Canada Manufacturing Sales Rebound in February

Canada's manufacturing sales rose 3.6% to C$71.2 billion in February 2026, rebounding from a 3% decline in January and slightly below preliminary estimates of 3.8%. Transportation equipment led the rebound, surging 18.8% to C$10.6 billion after an 18.4% plunge in January, with all industry groups posting gains and motor vehicles and parts showing the strongest performance. Machinery sales jumped 7.7% to C$4.6 billion on higher prices and volumes following January's 6.3% drop, while primary metals reached a record high at C$6.5 billion, up 4.9%. Meanwhile, chemical products declined 3.2% to C$5.0 billion, the lowest since July 2025, driven by weakness in basic chemicals and pharmaceuticals. Sales rose in six provinces, led by Ontario and Quebec, while Alberta posted the largest decline.

Canada’s manufacturing sales are expected to rise 3.8% in February 2026, following a 3% decline in January, according to preliminary estimates. The advance reflects higher sales in the transportation equipment and food subsectors. If confirmed, it would mark the strongest monthly advance since January 2023.

Canada’s manufacturing sales fell by 3% month-on-month to C$68.7 billion in January 2026, following a downwardly revised 0.4% increase in December 2025 and below preliminary estimates of a 3.3% drop. This marked the lowest level since May 2025, with sales down in 11 of the 21 manufacturing subsectors, led by transportation equipment (-18.2%) and machinery (-5.6%). Meanwhile, the miscellaneous manufacturing subsector cushioned the overall decline, with sales rising 16.8% to $1.5 billion in January, the highest level on record, driven mainly by higher sales in jewelry and silverware manufacturing amid elevated precious metal prices. Manufacturing sales fell in five provinces, with Ontario (-7.7%) posting the largest decline, while Quebec (1.4%) recorded the largest increase. On a year-on-year basis, total manufacturing sales declined by 3.9% in January.