Canada Manufacturing Sales Seen Rebounding in August

Canada’s manufacturing sales rose 1.5% month-over-month to C$79.9 billion in August 2026, beating expectations for a 1.1% increase and marking the sharpest rise since April. Sales increased in 12 of the 21 subsectors surveyed. Primary metal sales climbed 14% to a record C$7.6 billion, driven largely by gains in non-ferrous metal (excluding aluminum) production and processing. Chemical sales rose 4.4% to C$6.2 billion, with basic chemicals contributing the most to the increase. In contrast, transportation equipment sales fell 2.6% to C$12 billion, as motor vehicle sales declined 4% and motor vehicle parts sales dropped 4.2%. Sales increased in six provinces, led by Quebec (4%) and Newfoundland and Labrador (58.5%).

Canada’s manufacturing sales advance estimates indicate that total manufacturing sales increased 1.1% month-over-month in August 2026, after falling 0.4% in July. If confirmed, this would be the sharpest increase since May. The advance results indicate that the largest increases were recorded in the primary metal and chemical subsectors.

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.