Canada Manufacturing Sales Edge Higher in June

Canada’s manufacturing sales rose 0.1% month-on-month to C$78.8 billion in June 2026, following a 1.3% increase in May and beating estimates for a 0.1% decline. Sales increased in 15 of the 21 subsectors surveyed. Chemical sales rose 6.0%, marking a fourth consecutive monthly gain and reaching their highest level since October 2022, driven largely by higher sales of pharmaceutical products, resin, synthetic rubber, and artificial and synthetic fibres and filaments. Sales in the transportation equipment subsector increased 2.8%, extending its monthly growth streak to five months, led by gains in motor vehicle parts (6.2%) and aerospace products and parts (6.0%). Meanwhile, sales of petroleum and coal products fell 14.1% after three consecutive monthly increases, driven by lower prices for petroleum and energy products.

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%).