Canada Industrial Research Brief

Manufacturing shipments remain sluggish. Sales of manufactured goods eked out a 0.2 per cent monthly gain in February, fuelled by increases in sales of primary metals and chemical products. Once again, the rise in nominal sales was entirely due to higher prices, which have been the sole driver of shipment increases over the past five months. Adjusted for inflation, real manufacturing sales were flat month over month, extending the year-over-year decline. New orders fell by 1.8 per cent compared with the prior month; as a leading indicator of future production, this metric suggests manufacturing shipments may stay weak in the coming months. This trend aligns with softening business sentiment tied to tariff threats, which likely dampened production activity in the first quarter of 2025.