Canada manufacturing sales rise in August as primary metals and chemicals advance

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Canada manufacturing sales rise August

Highlights

Canada's total manufacturing sales rose 1.5% in August to $72.4 billion, led by a 14.0% surge in primary metal sales to a record $7.6 billion.
Quebec manufacturing sales hit a record $21.0 billion in August on a 20.1% increase in primary metal sales, while Newfoundland and Labrador's sales jumped 58.5% to $692 million.
The capacity utilization rate increased to 81.9% as inventories inched up 0.2% to $127.7 billion and unfilled orders held steady at $134.2 billion.

August sales rebound led by metals and chemicals

As reported by Statistics Canada, total manufacturing sales increase 1.5% in August after a 0.3% decline in July, with growth in 12 of 21 subsectors. Year over year, total sales are up 14.2%, while sales in constant dollars are unchanged as the Industrial Product Price Index rises 1.3%.

The primary metal subsector leads the monthly advance, with sales jumping 14.0% to a record $7.6 billion. Statistics Canada says the gain is driven by higher volumes and prices, while constant-dollar sales rise 9.1%, concentrated mainly in non-ferrous metal production and processing amid stronger global demand for copper, silver and other non-ferrous metals tied to electrification, renewable energy investment and advanced industrial applications.

Chemical product sales rise 4.4% to $6.2 billion after an equal-sized decline in July, helped mainly by basic chemicals. The increase is largely price-driven, with constant-dollar sales up 0.4%, and coincides with a 12.7% rise in exports of basic chemicals.

Transportation equipment moves in the opposite direction, with sales falling 2.6% to $12.0 billion for a second straight monthly decline. Motor vehicle sales drop 4.0%, motor vehicle parts sales fall 4.2%, and aerospace production decreases 4.8% to its lowest level since February 2026, while exports of aircraft, aircraft engines and aircraft parts decline 18.3% in August.

Provincial gains and operating indicators

Sales rise in six provinces, led by Quebec and Newfoundland and Labrador. Quebec manufacturing sales increase 4.0% to a record $21.0 billion, supported by gains in 13 of 21 subsectors, with primary metal sales surging 20.1% to $4.0 billion on stronger demand and prices.

In Newfoundland and Labrador, manufacturing sales jump 58.5% to $692 million, the highest level since May 2019. The increase is driven by an 82.6% gain in non-durable products, leaving total sales 125.1% above the same month last year.

Total inventories edge up 0.2% to $127.7 billion, extending an upward trend that has been in place since January 2026. The increase reflects higher goods in process, especially in fabricated metals and machinery, while the inventory-to-sales ratio declines from 1.62 in July to 1.60 in August.

Unfilled orders remain unchanged at $134.2 billion, as increases in fabricated metal products offset declines in aerospace. The manufacturing sector's capacity utilization rate rises to 81.9% from 80.7%, with the largest gains in non-metallic mineral, chemical and primary metal subsectors.

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