Canada Manufacturing Sales Seen Rising in May

Canada’s manufacturing sales are projected edge down 0.1% month-over-month in June 2026, following a 1.3% increase in May, according to preliminary estimates. The expected decrease is mainly driven by a decline in the petroleum and coal products subsector. Excluding the subsector, total manufacturing sales rose 2.2% in June.

Canada's manufacturing sales rose 1.3% month-over-month to a record C$78.1 billion in May 2026, beating market expectations for a 1.1% increase after a 4.2% gain in April. Sales increased in 14 of the 21 subsectors. Motor vehicle sales climbed 11.8% to C$4.6 billion, rebounding from a 4.6% decline in April, driven by higher sales of automobiles, light-duty vehicles, and heavy-duty trucks. In the chemical subsector, sales rose 4.6% to C$5.9 billion, marking the third consecutive monthly increase and the highest level since July 2024. Gains were broad-based across the sector, with basic chemical manufacturing posting the largest increase. Meanwhile, the electrical equipment, appliance, and component subsector recorded the sharpest decline, with sales falling 5.8% to C$1.4 billion, mainly due to lower-than-usual seasonal sales of electrical equipment. Regionally, manufacturing sales increased in six provinces, led by Ontario (2.0%) and Saskatchewan (9.6%).

Canada’s manufacturing sales are projected to rise 1.1% month-over-month in May 2026, following a 4.2% increase in April, according to preliminary estimates. The expected increase is mainly supported by stronger sales in the motor vehicle industry group and the chemical subsector.