July 16, 2025
Statistics Canada announced that total manufacturing sales declined 0.9% to $68.7 billion in May, marking the lowest level since January 2022.
The Federal Agency notes that the decline in May 2025 was mainly due to reduced sales in the petroleum and coal product (-8.4%) and machinery (-2.7%) subsectors. Excluding the petroleum and coal product subsector, total manufacturing sales edged down 0.1% during the same period.
The declines were partially offset by a 6.9% increase in production of aerospace products and parts. Year over year, total manufacturing sales were down 4.1% in May.
Feedback from respondents highlighted the impact that the recent tariffs imposed by the United States have had on Canada's manufacturing sector. According to data collected, the impact of tariffs on Canada's manufacturing sector in May was smaller than in April. In May, nearly half of manufacturers reported being impacted by the tariffs, a decrease of about 10 percentage points from April.
Sales decreased in four provinces in May, led by Alberta and Quebec. Sales in British Columbia and Ontario increased the most.