Canada’s manufacturing sales rose to a record $78.1 billion in May, extending a four-month run of gains as stronger motor vehicle production and higher chemical prices lifted factory revenues.
Manufacturing sales increased 1.3 percent from April and were up 13.4 percent compared with May 2025. Sales increased in 14 of 21 manufacturing subsectors.
After removing the effect of price changes, manufacturing sales rose 0.5 percent. The Industrial Product Price Index increased 1.2 percent during the month.
The motor vehicle industry posted the largest increase. Sales climbed 11.8 percent to $4.6 billion after falling 4.6 percent in April. Statistics Canada attributed the gain to higher sales of passenger vehicles, light-duty vehicles and heavy-duty trucks. Compared with a year earlier, motor vehicle sales were up 9.0 percent.
Chemical manufacturing sales increased 4.6 percent to $5.9 billion, the third consecutive monthly gain and the highest level since July 2024. The increase was led by basic chemical manufacturing. Statistics Canada said the higher sales reflected rising prices rather than increased output, noting that chemical sales fell 1.7 percent in real terms.
The electrical equipment, appliance and component subsector recorded the largest decline. Sales fell 5.8 percent to $1.4 billion because of lower-than-usual seasonal sales across several industry groups. Despite the monthly drop, sales remained 8.1 percent higher than a year earlier.
Ontario accounted for much of the national increase. Manufacturing sales in the province rose 2.0 percent to $32.6 billion, the highest level since September 2023 and the fourth straight monthly increase.
Transportation equipment led the provincial advance, with motor vehicle sales rising 12.2 percent to $4.2 billion. Aerospace product and parts manufacturing increased 9.0 percent to $730 million. Those gains were partly offset by a 10.0 percent decline in computer and electronic product manufacturing. Ontario’s manufacturing sales were 6.7 percent higher than in May 2025.
Saskatchewan posted the largest provincial percentage increase. Sales rose 9.6 percent to $2.2 billion, driven mainly by a 20.4 percent increase in food manufacturing. Statistics Canada said stronger grain and oilseed milling sales coincided with higher exports, supported by increased demand for Canadian canola products from China following an easing of trade tensions, as well as continued demand from the United States.
Quebec was the only major manufacturing province to report a decline. Sales slipped 0.8 percent to $19.8 billion after four consecutive monthly increases. Lower petroleum and coal product sales accounted for most of the decrease. Excluding that subsector, manufacturing sales edged up 0.1 percent.
Manufacturers continued to build inventories during the month. Total inventories increased 0.5 percent to a record $125.9 billion, the fifth consecutive monthly gain. Higher goods in process and raw material inventories more than offset a decline in finished products. The largest inventory increases were recorded in the chemical subsector and aerospace product and parts manufacturing.
The inventory-to-sales ratio edged down to 1.61 in May from 1.62 in April.
Unfilled orders rose 6.7 percent to a record $131.5 billion. Transportation equipment accounted for most of the increase, led by a 13.4 percent jump in aerospace product and parts orders. Statistics Canada said stronger demand for business and commercial aircraft, aircraft parts and maintenance services drove the increase.
Manufacturing capacity utilization also strengthened. The sector’s unadjusted capacity utilization rate rose to 82.5 percent in May from 80.4 percent in April. The largest increases were reported in the chemical, transportation equipment and food subsectors, while primary metal manufacturing recorded a decline.