Manufacturing sales fall 0.4% to $78.7 billion
Total manufacturing sales fell 0.4% to $78.7 billion in July after five consecutive monthly increases, with declines in 8 of 21 subsectors, while inventories and unfilled orders hit record highs.
- Total manufacturing sales fell 0.4% to $78.7 billion in July after five consecutive monthly increases.
- Sales were 10.9% higher year over year, with declines in 8 of 21 subsectors.
- Chemical sales fell 6.6% to $5.9 billion, while petroleum and coal sales rose 1.9% to $10.4 billion.
- Inventories reached a record $127.5 billion, and unfilled orders reached a record $134.6 billion.
- Sales declined in six provinces, led by Alberta (-2.7%) and Manitoba (-7.7%).
Total manufacturing sales fell 0.4% to $78.7 billion in July, ending five consecutive monthly increases. Sales declined in 8 of 21 subsectors, led by chemicals and food, but remained 10.9% higher than a year earlier.
Chemical sales dropped 6.6% to $5.9 billion after four straight monthly gains. The decline came in six of seven chemical industry groups, led by resin, synthetic rubber, and artificial and synthetic fibres and filaments. Chemical sales rose 13.9% year over year. Food manufacturing sales fell 1.4% to $13.9 billion, mainly on lower grain and oilseed milling sales, and rose 4.9% year over year.
Petroleum and coal product sales rose 1.9% to $10.4 billion, driven by higher prices, while constant-dollar sales fell 4.1%. Current-dollar sales were up 43.5% year over year. Exports of refined petroleum products increased 6.7%. Higher energy and petroleum prices partly reflect renewed tensions between the United States and Iran and concerns over disruptions to crude oil shipments through the Strait of Hormuz.
In constant dollars, total manufacturing sales decreased 1.4%, while the Industrial Product Price Index rose 0.6%. Sales fell in six provinces, led by Alberta and Manitoba. Alberta sales declined 2.7% to $10.4 billion, with chemical sales down 14.1% and petroleum and coal sales down 4.0%. Manitoba sales fell 7.7% to $2.4 billion, mainly due to lower chemical and food sales.
Manufacturers held record inventories, up 0.3% to $127.5 billion, extending an upward trend since January 2026. Raw materials rose 0.7%, finished products rose 0.1%, and goods in process rose 0.1%. Computer and electronic product inventories rose 2.9%, while motor vehicle inventories fell 16.6%. The inventory-to-sales ratio rose to 1.62 from 1.61.
Unfilled orders also reached a record, rising 1.9% to $134.6 billion, marking a sixth consecutive monthly gain. The increase was driven by fabricated metal products, up 4.6%, machinery, up 3.0%, and aerospace products and parts, up 0.7%. The capacity utilization rate, not seasonally adjusted, fell to 80.7% from 82.2% in June.
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