Canadian manufacturers posted record sales in April as higher petroleum production and stronger energy prices pushed shipments to their highest level on record.
Manufacturing sales rose 4.2 percent to $77.1 billion in April, following a 3.4 percent increase in March. Sales increased in 17 of 21 subsectors.
The petroleum and coal products subsector accounted for much of the gain. Sales climbed 22.6 percent to a record $11.8 billion after rising 25.5 percent a month earlier. Several refineries increased production after maintenance shutdowns in March. Sales volumes in the subsector rose 17.5 percent after adjusting for price changes.
Food manufacturing also reached a record level. Sales increased 2.9 percent to $13.9 billion, supported by higher activity in grain and oilseed milling. Food sales were up 5.9 percent compared with April 2025.
Excluding petroleum and coal products, total manufacturing sales increased 1.4 percent from March. In volume terms, overall manufacturing sales rose 1.8 percent, while industrial product prices increased 2.0 percent during the month.
The gains were not spread evenly across the sector.
Sales in the primary metal subsector fell 4.6 percent to $6.3 billion, marking a second consecutive monthly decline. The largest decrease came from non-ferrous metal production and processing, excluding aluminum. Sales in that industry had reached a record high in March.
Provincial results reflected the strength of the energy sector.
Alberta recorded the largest increase among the provinces. Manufacturing sales rose 16.7 percent to a record $10.5 billion. Petroleum and coal products led the advance, followed by food manufacturing and chemical products. Total sales in Alberta were 23.2 percent higher than a year earlier.
Quebec manufacturers reported sales of $20 billion in April, up 4.2 percent from March and also a record high. Petroleum and coal products posted the largest increase, while sales of computer and electronic products fell 15.5 percent after six months of gains.
Manitoba recorded the largest provincial decline. Sales fell 6.1 percent to $2.3 billion, largely because of lower production of aerospace products and parts and weaker chemical manufacturing sales. Despite the monthly drop, sales remained 10.5 percent above year-earlier levels.
Manufacturers continued to add to their inventories in April.
Total inventories increased 0.5 percent to $125 billion. Machinery, petroleum and coal products, and transportation equipment recorded the largest gains. Inventories of goods in process rose 1.4 percent and finished product inventories increased 0.7 percent, while raw material inventories edged down 0.1 percent.
The inventory-to-sales ratio declined from 1.68 in March to 1.62 in April, the lowest level since January 2023. The ratio measures how long current inventories would last if sales remained unchanged.
Unfilled orders rose 1.3 percent to a record $123.2 billion. Transportation equipment and primary metals accounted for most of the increase. Higher demand in those industries more than offset a decline in fabricated metal product orders.
Despite stronger sales, manufacturing plants operated at a lower share of capacity.
The sector’s capacity utilization rate fell to 80.6 percent in April from 81.8 percent in March. The largest declines were reported in petroleum and coal products, primary metals and machinery. Non-metallic mineral product manufacturers recorded the largest increase in capacity use during the month.