FX.co ★ Canada Manufacturing Sales Fall the Most Since 2023

In April 2025, Canada's manufacturing sales experienced a significant decline, dropping by 2.8% to C$69.6 billion. This decrease surpassed the preliminary forecast of a 2% fall, marking the most substantial reduction since October 2023 and reaching the lowest level since January 2022. The downturn was primarily driven by a sharp fall in petroleum and coal products (-10.9%), motor vehicles (-8.3%), and primary metals (-4.4%). Even when excluding petroleum and coal, sales still saw a decrease of 1.8%. Approximately half of the manufacturers reported adverse effects from U.S. tariffs, impacting them through various channels. Among them, one-third noted price hikes, a quarter faced increased costs related to raw materials, shipping, or labor, and one-fifth observed shifts in product demand. Year-on-year, manufacturing sales decreased by 2.7%.