Canada Industrial Research Brief

Manufacturing demand stays weak despite strong headlines. Sales of manufactured goods rose 1.7 per cent month over month in January, driven by an 11.1 per cent rebound in motor vehicle sales and a 4.7 per cent lift in petroleum and coal product sales. Yet much of this strength is due to seasonal fluctuations – such as the resumption of auto sector operations after planned winter shutdowns in December – and higher prices boosting energy product sales. Excluding these seasonal and price factors, real sales fell short in January compared with the same month last year, down 2.1 per cent year over year. This ongoing weakness, coupled with declining manufacturing output, has persisted since early 2024, coinciding with Canada’s slackening productivity growth.