Canadian Manufacturing Sales Hit Record Highs in Q2 2026

Canadian manufacturing sales surged to a record high in the second quarter of 2026, marking the fourth consecutive quarterly increase. Total sales reached $235.1 billion, up 9.3% from the previous quarter and 14.5% year-over-year.

The growth was broad-based but led by two key subsectors: transportation equipment and chemicals. Transportation equipment sales rose 14.7% quarterly to $36.0 billion, driven by strong demand for motor vehicle parts and aerospace products. Chemical sales climbed 10.9% in the quarter, reaching their highest level since October 2022.

While the overall picture is robust, June’s monthly data showed volatility. Sales rose just 0.1% to $78.8 billion, the fifth consecutive monthly gain. However, this masked a sharp 14.1% decline in petroleum and coal product sales, which fell to $10.1 billion due to lower energy prices. Excluding petroleum, June sales increased by a more substantial 2.6%.

Unfilled orders also hit a record high, rising 1.2% to $131.8 billion in June. This backlog, driven largely by aerospace manufacturers, suggests continued demand pressure on the sector. Meanwhile, total manufacturing inventories increased slightly by 0.6% to $126.8 billion, with goods-in-process and raw materials leading the rise.

Regionally, Quebec and Alberta posted the largest gains in June. Quebec sales rose 1.5% to $20.3 billion, fueled by record-high aerospace production of $2.1 billion. Alberta saw a 1.6% increase to $10.8 billion, with chemical and food sectors leading the charge.

Capacity utilization remained steady at 82.3% in June, up slightly from May. The industrial product price index fell 1.4%, indicating that much of the sales growth was volume-driven rather than price-driven. On a constant dollar basis, manufacturing sales increased 1.2% in June and 4.6% for the quarter.