BUSINESS NEWS FROM CANADA

BUSINESS NEWS FROM CANADA

Canada’s Manufacturing Rebounds in February but March Momentum Softens

Auto sector recovery lifts factory sales, while tariff pressure and weaker confidence cloud the short-term outlook

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Canada’s Manufacturing Rebounds in February but March Momentum Softens

Auto sector recovery lifts factory sales, while tariff pressure and weaker confidence cloud the short-term outlook

Sales Magazine powered by ReformBusiness, your external sales partnerSales Magazine powered by ReformBusiness, your external sales partnerSales Magazine powered by ReformBusiness, your external sales partnerSales Magazine powered by ReformBusiness, your external sales partner

PUBLISHED April 28, 2026

Manufacturing Sales Bounce Back in February

According to “Monthly Manufacturing – Canada – February 2026 and March 2026” published on LinkedIn by Paul Young, Canadian manufacturing sales (shipments) rose 3.6% to CAD 71.2 billion in February 2026. The increase followed a 3.1% decline in January, marking a solid rebound for the sector.

Automotive Recovery Led the Gains

The strongest contribution came from transportation equipment. Sales in the sector surged 18.8% to CAD 11.5 billion, largely reflecting a recovery after extended auto plant shutdowns in January. This shows how strongly Canada’s manufacturing totals remain influenced by automotive production cycles.

Machinery and Metals Also Improved

Other important industrial categories also posted gains. Machinery sales increased 7.7% to CAD 4.6 billion, while primary metals rose 4.9% to CAD 6.5 billion, reaching a new record high according to the report. The data suggests broader industrial support beyond autos alone.

Ontario and Quebec Powered Growth

Regional performance was strongest in central Canada. Ontario led gains with a 24.7% rise in transportation equipment sales, supported by a 43.7% jump in motor vehicle sales after model retooling. Quebec sales rose 2.4% to CAD 19.0 billion, helped by record primary metal sales and a 5.5% increase in aerospace production.

Ontario and Quebec Powered Growth

Regional performance was strongest in central Canada. Ontario led gains with a 24.7% rise in transportation equipment sales, supported by a 43.7% jump in motor vehicle sales after model retooling. Quebec sales rose 2.4% to CAD 19.0 billion, helped by record primary metal sales and a 5.5% increase in aerospace production.

Alberta Was the Main Weak Spot

Not all provinces benefited equally. Alberta recorded the largest decline, with sales falling 2.5% to CAD 8.5 billion, mainly due to a 5.1% drop in petroleum and coal products. This highlights ongoing volatility in commodity-linked manufacturing categories.

Annual Performance Still Below Last Year

Despite the monthly rebound, the broader annual picture remained softer. Total manufacturing sales in February were still 1.7% lower than in February 2025, indicating that Canada’s industrial recovery remains incomplete.

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March Outlook Turns More Cautious

The report notes that Canada’s manufacturing PMI for March 2026 fell to 50.0, signaling stagnation. High prices and continued U.S. tariff headwinds were cited as key challenges. This suggests February’s rebound was encouraging, but momentum entering spring remained fragile.

Alberta Was the Main Weak Spot

Not all provinces benefited equally. Alberta recorded the largest decline, with sales falling 2.5% to CAD 8.5 billion, mainly due to a 5.1% drop in petroleum and coal products. This highlights ongoing volatility in commodity-linked manufacturing categories.

Annual Performance Still Below Last Year

Despite the monthly rebound, the broader annual picture remained softer. Total manufacturing sales in February were still 1.7% lower than in February 2025, indicating that Canada’s industrial recovery remains incomplete.

Sales Magazine powered by ReformBusiness, your external sales partnerSales Magazine powered by ReformBusiness, your external sales partnerSales Magazine powered by ReformBusiness, your external sales partnerSales Magazine powered by ReformBusiness, your external sales partner

March Outlook Turns More Cautious

The report notes that Canada’s manufacturing PMI for March 2026 fell to 50.0, signaling stagnation. High prices and continued U.S. tariff headwinds were cited as key challenges. This suggests February’s rebound was encouraging, but momentum entering spring remained fragile.

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