Canada Manufacturing Sales Seen Rising in May

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.

Canada’s manufacturing sales rose 4.2% month-over-month to a record C$77.1 billion in April 2026, following a 3.4% increase in March and marking the strongest growth since February 2022. Sales increased in 17 of 21 subsectors. Petroleum and coal product sales surged 22.6% to another record high as several refineries ramped up production after maintenance shutdowns in March, while the closure of the Strait of Hormuz continued to support energy prices. Food product sales also reached a record high, rising 2.9%, led by higher grain and oilseed milling activity. In contrast, primary metal sales fell 4.6%, the largest decline among subsectors. Manufacturing sales rose in seven provinces, led by Alberta (16.7%) and Quebec (4.2%). Excluding petroleum and coal products, total manufacturing sales increased 1.4%.