Statistics Canada announced that Canadian manufacturing sales decreased 2.1% to $69.6 billion in June, on declines in 17 of 21 subsectors, led by the transportation equipment (-2.9%), chemical product (-5.8%) and primary metal (-2.7%) subsectors.

On a quarterly basis, total sales fell 0.3% in the second quarter of 2024, the third consecutive quarterly decline. The decline in the second quarter was driven by lower sales in the petroleum and coal product subsector (-4.0%) as well as the motor vehicle industry group (-3.8%). On a year-over-year basis, total sales decreased 1.8% in June.

The Federal Agency notes that manufacturing sales fell in eight provinces in June. The largest declines were posted in Quebec, Ontario and Alberta, while the largest increase was in New Brunswick.

In Quebec, sales decreased 3.2% to $17.8 billion in June, largely on lower sales of primary metals (-7.4%) and fabricated metal products (-9.2%). The decline in the primary metal subsector was the main contributor to the 5.7% decrease in total sales in Montral. Despite the month-over-month decline, total sales in Quebec were up 3.8% compared with June 2023 and increased 1.6% in the second quarter of 2024.

Following two consecutive monthly increases, sales in Ontario fell 1.7% to $30.7 billion in June, driven by lower sales of motor vehicle parts (-5.9%) and machinery (-5.5%). Sales in Ontario were 7.1% lower on a yearly basis in June, while they declined 1.2% over the second quarter.

In Alberta, sales fell 2.5% to $8.4 billion in June, mainly on lower sales in the chemical product (-7.3%) and machinery (-11.6%) subsectors. Lower sales of chemical products also contributed to the 0.5% decline in total sales in Edmonton. Despite the monthly decline, sales in Alberta were up 6.5% year over year in June and rose 0.5% over the second quarter.