FX.co ★ Canada Manufacturing Sales Decline in October

In October 2025, Canada's manufacturing sales experienced a decline of 1.0% from the previous month, totaling C$71.5 billion. This downturn follows a significant 3.3% increase observed in September and aligns closely with earlier projections, which anticipated a 1.1% drop. Declines were noted in 11 out of the 21 subsectors. Notably, chemical product sales, which had previously seen two months of gains, decreased by 6.0% to reach C$5.2 billion, driven by reduced activity in the pharmaceutical and medicine sectors. Meanwhile, wood product sales fell by 9.0% to C$2.9 billion, marking their lowest point since July 2020. This decline was primarily attributed to recent U.S. tariffs that led to production slowdowns and announcements of sawmill closures. Additionally, transportation equipment sales saw a reduction of 2.3%, reaching C$11.5 billion following a 9.3% increase in September, with the aerospace products and parts sector experiencing the largest decrease. Regionally, sales declined in six provinces, with Ontario and Quebec leading the declines at -1.7% and -2.5%, respectively. Despite these monthly fluctuations, manufacturing sales saw a 0.7% increase when compared to the same period the previous year.