FX.co ★ Canada Factory Sales Decline in July

Canada’s manufacturing sales slipped 0.4% month over month to C$78.7 billion in July 2026, following a 0.1% increase in June and coming in weaker than expectations for a 0.2% decline. Sales decreased in 8 of 21 subsectors, led by a 6.6% drop in chemical products, reflecting lower sales in 6 of 7 industry groups, most notably in resins, synthetic rubber, and artificial and synthetic fibres and filaments. Food manufacturing sales fell 1.4%, largely due to reduced sales in grain and oilseed milling. In contrast, sales of petroleum and coal products rose 1.9%, supported by higher prices, partly linked to renewed US–Iran tensions and concerns about crude shipments through the Strait of Hormuz. Overall, sales declined in six provinces, with the largest decreases in Alberta (-2.7%) and Manitoba (-7.7%). Despite the monthly pullback, manufacturing sales were 10.9% higher compared with a year earlier.