FX.co ★ Canada Factory Sales Fall Less Than Expected

Canada’s manufacturing sales declined 3% month-on-month to C$68.7 billion in January 2026, following a downwardly revised 0.4% increase in December 2025 and coming in slightly better than preliminary estimates of a 3.3% drop. This was the lowest level since May 2025. Sales decreased in 11 of the 21 manufacturing subsectors, with the largest pullbacks in transportation equipment (-18.2%) and machinery (-5.6%).

In contrast, the miscellaneous manufacturing subsector helped soften the overall decline, as sales jumped 16.8% to C$1.5 billion in January, the highest level on record. This gain was driven primarily by increased sales in jewelry and silverware manufacturing, supported by elevated precious metal prices.

Regionally, manufacturing sales fell in five provinces. Ontario recorded the largest decrease, with sales down 7.7%, while Quebec posted the largest increase, up 1.4%. On a year-on-year basis, total manufacturing sales were 3.9% lower in January.