Canadian Manufacturing Sales Rise 1.5% to C$79.9 Billion in August

Canadian manufacturing sales increased 1.5% to C$79.9 billion in August, rebounding from a 0.3% decline in July as higher sales of primary metals lifted the national total. Twelve of Canada’s 21 manufacturing subsectors reported gains, according to figures Statistics Canada released Thursday.

The rise in dollar sales did not translate into an increase in overall sales volumes. Measured in constant dollars, manufacturing sales were unchanged from July, while the Industrial Product Price Index advanced 1.3%. The contrast is important: factories collected more revenue, but the data do not show that the manufacturing sector as a whole sold more goods after adjusting for prices.

Sales were 14.2% higher than in August 2025 in current-dollar terms. The latest Monthly Survey of Manufacturing also showed a split between industries, with metal and chemical producers posting gains while transportation equipment sales declined for a second month.

Primary metals lead the increase, with chemicals also higher

Primary metal manufacturers reported C$7.6 billion in August sales, an increase of 14.0% from July and the highest level on record for that subsector. The improvement reflected both prices and activity: sales measured in constant dollars rose 9.1%, so the gain cannot be explained solely by higher selling prices.

The increase was concentrated largely in the production and processing of non-ferrous metals other than aluminum. Statistics Canada pointed to stronger global demand for metals including copper and silver, linked to electrification, renewable-energy investment and advanced industrial applications. Primary metal sales were 27.8% above their level a year earlier.

The scale of the metals increase explains much of the national result. The subsector added about C$935 million in sales from July to August, based on Statistics Canada’s seasonally adjusted industry table. Total manufacturing sales across the country increased by approximately C$1.16 billion over the same period. Gains elsewhere and declines in other industries affected the final balance.

Chemical manufacturing sales rose 4.4% to C$6.2 billion, reversing a decline of the same percentage in July. Basic chemicals contributed most to the rebound. Unlike primary metals, the chemical increase was overwhelmingly a price story: sales volumes rose only 0.4% after adjusting for prices. The agency also reported a 12.7% rise in exports of basic chemicals during August.

There were supporting gains outside those two industries. Fabricated metal product sales increased 4.0% and machinery sales grew 2.3%. More broadly, sales of durable manufactured goods rose 2.9%, compared with an increase of just 0.1% for non-durable goods. Those differences help explain why a positive headline number coexisted with flat manufacturing sales volumes overall.

Auto sales and aerospace production offset gains

Transportation equipment was the main counterweight to the improvement in metals. Sales in the subsector dropped 2.6% to C$12.0 billion, extending July’s decline. The pullback was visible in both finished vehicles and parts, two areas that account for a substantial share of Canadian manufacturing activity.

Motor vehicle sales fell 4.0% in August and motor vehicle parts declined 4.2%. Statistics Canada attributed the weakness in vehicle sales to softer-than-usual seasonal activity and an extended summer shutdown at a major auto assembly plant. The release did not identify the facility, so the figures do not support assigning the decline to any named manufacturer.

Aerospace also lost ground. Production of aerospace products and parts decreased 4.8%, reaching its lowest level since February 2026. Exports of aircraft, aircraft engines and aircraft parts fell 18.3% during the month, reinforcing the picture of a weaker August for that industry.

The aerospace measure warrants a distinction from ordinary sales data. Because aircraft can take considerable time to build, Statistics Canada uses the value of production for aerospace rather than only the value of goods sold. Changes in inventories of unfinished and completed products are part of that calculation, making the measure better suited to long production cycles.

The transportation decline was not uniform. Ship and boat building increased 7.9% in the published industry table, although its C$549 million monthly total was much smaller than the motor vehicle and aerospace businesses. That variation matters when interpreting a large sector-wide decline as evidence about individual industries.

Quebec supplies most of the provincial lift

Quebec recorded a 4.0% increase in manufacturing sales to C$21.0 billion, its highest level on record. Sales rose in 13 of its 21 subsectors, and primary metals were the principal contributor. Quebec’s metal sales jumped 20.1% to C$4.0 billion amid higher demand and prices.

The province’s monthly increase was about C$816 million, compared with a national increase of roughly C$1.16 billion, according to the agency’s provincial table. In other words, Quebec accounted for approximately 70% of the net rise across Canada. Its August manufacturing sales were also 15.1% higher than a year earlier.

Ontario, Canada’s largest manufacturing province by sales, showed little change. Its total was approximately C$32.94 billion, almost identical to July’s C$32.95 billion. The difference between Quebec’s gain and Ontario’s essentially flat reading underscores how unevenly the national increase was distributed.

Newfoundland and Labrador posted the largest percentage increase among provinces, with sales jumping 58.5% to C$692 million, the highest since May 2019. Non-durable manufacturing drove much of that advance. The percentage change was much larger than Quebec’s, but the province’s considerably smaller manufacturing base meant a smaller contribution in dollar terms.

Manufacturing sales increased in six provinces altogether. New Brunswick registered a 6.0% gain, while Alberta was up 0.2%. British Columbia declined 0.2%. The provincial picture therefore points to selected areas of strength rather than a uniform improvement throughout Canadian manufacturing.

Unfilled orders hold steady as inventories edge higher

Manufacturers held C$127.7 billion in inventories in August, up 0.2% from July. Goods in process increased 0.8%, while finished goods inventories slipped 0.1% and raw materials were unchanged. Inventories of fabricated metal products and machinery contributed to the overall increase.

The inventory-to-sales ratio declined to 1.60 from 1.62 a month earlier. This ratio estimates how many months of sales the reported inventories would represent if sales remained at their current level. Its August decrease should be considered alongside the increase in sales values, rather than treated on its own as evidence of stronger physical demand.

Unfilled orders held at C$134.2 billion. Fabricated metal product manufacturers reported a 4.3% increase in their backlog, while unfilled aerospace orders declined 1.3%. Such orders represent potential future sales, provided customers do not cancel them; a stable aggregate backlog does not by itself indicate that new demand accelerated in August.

Factory capacity utilization also increased, from 80.7% in July to 81.9% in August. That measure is not seasonally adjusted, unlike the headline manufacturing-sales figures. The strongest gains in utilization occurred in non-metallic mineral products, chemicals and primary metals, broadly matching the areas that reported higher dollar sales.

The August estimates remain subject to revision as new responses and administrative information become available. Statistics Canada has scheduled an advance estimate for September manufacturing sales on October 23 and the full September Monthly Survey of Manufacturing for November 13, offering the next check on whether August’s price-heavy rise was followed by a broader improvement in activity.