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Special Report

Canada Industrial Research Brief

January 2025

Manufacturing Sector Poised for
Strong 2024 Finish Amid Looming Trade Tensions

Manufacturing sales expanded in November. Sales of manufactured goods rose by 0.8 per cent month over month in November, driven by a 9.3 per cent increase in sales of aerospace products and parts and a 2.6 per cent gain in petroleum and coal product sales. When adjusted for inflation using the Industrial Product Price Index, however – which rose by 0.6 per cent – sales volume remained unchanged, indicating little to no growth in November’s real GDP. Nevertheless, new orders climbed in both nominal and real terms, likely spurred by a weaker Canadian dollar and early purchases from U.S. buyers anticipating potential tariffs. With total inventory rising at a slower pace relative to total sales, the inventory-to-sales ratio declined to its lowest level since September 2023. As Canada’s economy continues to perform below potential, this downward trend suggests that businesses have probably become more cautious about building up inventory due to uncertainty around future sales.

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