Canada’s manufacturing sector started 2026 on weaker footing, with manufacturing sales falling 3.3% month-over-month in January 2026, according to data updated on 24 February 2026. The decline follows a 0.6% increase in December 2025, marking a sharp reversal in momentum for the industry.
The figures are measured on a month-over-month basis, meaning January’s performance is compared directly with December’s. While December had shown modest growth in sales relative to November, the January data indicate a significant pullback, suggesting that demand conditions may have softened at the start of the year.
The abrupt swing from growth to contraction in manufacturing sales will likely be watched closely by businesses, policymakers, and investors as they assess the health of Canada’s goods-producing sector and its potential drag on broader economic performance in early 2026.
