Canada Industrial Research Brief

Large swing in auto production weakened total sales. The uptick in December’s manufacturing shipments reversed at the start of 2026. Total manufacturing sales fell 3.0 per cent, driven by a 38.9 per cent drop in motor vehicle sales and a 7.7 per cent decline in auto parts shipments. This drop in production was largely due to extended winter shutdowns at several major auto assembly plants in Ontario for model change retooling and maintenance. While sales excluding the auto sector softened only slightly by 0.4 per cent, the 5.6 per cent decline in machinery sales underscored trade-related headwinds. Meanwhile, as the U.S. reportedly considered rolling back some tariffs on steel and aluminum products, momentum in primary and fabricated metal manufacturing continued into January and could strengthen further in the coming months.