Canada Industrial Research Brief

Manufacturing activity disappointed in December. Sales of manufactured goods missed expectations in the final month of 2024, increasing by just 0.3 per cent compared with a projected 0.7 per cent gain. Regionally, sales rose by 1.9 per cent in Quebec, Alberta and British Columbia combined, partially offset by a 1.3 per cent drop in Ontario. Adjusted for inflation, total sales fell 0.8 per cent, while new orders edged up just 0.1 per cent. Shipments of transportation equipment declined by 4.3 per cent, weighed down by weak global demand and economic uncertainty. Given that transportation equipment accounts for 17 per cent of total shipments, its downturn was the largest contributor to the overall decline in December. This weakness contrasts with expectations that manufacturing sales would rise ahead of the originally planned U.S. tariffs.