Canada Manufacturing Sales Seen Falling in July

Canada’s manufacturing sales advance estimate indicates that total manufacturing sales edged down 0.2% month-over-month in July 2026, after rising 0.1% in June. The largest declines were recorded in the chemical and fabricated metal product subsectors.

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.