Canada Manufacturing Sales Grow 1.5% in August
The national manufacturing sector saw sales rise to $79.9 billion as primary metal production surged.
Updated on Oct. 15, 2026 in Manufacturing
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Total manufacturing sales in Canada rose 1.5% in August 2026 to reach $79.9 billion. This performance follows a 0.3% decrease recorded in July 2026.
Why it matters
The growth was largely driven by a 14.0% increase in the primary metal subsector, supported by stronger global demand for non-ferrous metals. Increased output helped push the national manufacturing capacity utilization rate to 81.9% for the month.
Total manufacturing sales reached $79.9 billion in August, with chemical subsector sales climbing 4.4% to $6.2 billion. Meanwhile, transportation equipment sales fell 2.6% to $12.0 billion due to seasonal activity and plant shutdowns.
The details
Sales growth occurred in 12 of 21 subsectors, with primary metal production leading the gains as volumes and prices rose. Total inventories also saw a slight uptick, rising 0.2% to reach $127.7 billion, while the inventory-to-sales ratio sat at 1.60.
Timeline
July 2026 saw total manufacturing sales decrease 0.3%.
August 2026 marked a total manufacturing sales increase of 1.5%.
Market Landscape
The steady inventory-to-sales ratio of 1.60 suggests that producers are managing stock levels in alignment with recent sales volume fluctuations. This metric provides a crucial benchmark for how the industry balances output with fluctuating global demand.
The uptick in manufacturing sales may signal stable or increased output for domestic goods, which can influence local employment levels in provinces like Quebec and Newfoundland and Labrador. Consumers might see steadier supply chains as manufacturers balance their inventory-to-sales ratios.
The takeaway
The manufacturing sector's growth in August highlights the importance of non-ferrous metal demand in offsetting seasonal declines in other areas like transportation. Tracking these subsector shifts helps identify which parts of the economy are expanding production to meet global needs.
Further reading
For more context on the industrial sector, visit Canada Manufacturing.
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Do you feel the manufacturing sector's recent growth indicates that your local economy is improving?
