Canada Factory Sales Decline in July

Canada’s manufacturing sales fell 0.4% month over month to C$78.7 billion in July 2026, following a 0.1% rise in June and missing estimates for a 0.2% decline. Sales fell in eight of 21 subsectors, led by a 6.6% drop in chemical products, driven by lower sales in six of seven industry groups, particularly resin, synthetic rubber, and artificial and synthetic fibres and filaments. Food manufacturing sales fell 1.4%, largely due to lower grain and oilseed milling sales. Petroleum and coal products sales rose 1.9%, driven by higher prices, partly reflecting renewed US-Iran tensions and concerns over crude shipments through the Strait of Hormuz. Sales declined in six provinces, led by Alberta (-2.7%) and Manitoba (-7.7%). Manufacturing sales were 10.9% higher year over year.

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.