Canada’s manufacturing sales rose 2.5% MoM to $70.3B in July 2025, rebounding strongly after a modest June gain but still down -1.7% YoY.

• In constant dollars, sales increased 1.6% MoM, while the Industrial Product Price Index rose 0.7%, pointing to both higher volumes and prices.

• Transportation equipment sales jumped 8.6% MoM to $11.4B, led by motor vehicles (+11.4%), motor vehicle parts (+7.2%), and aerospace products (+6.5%), reversing four straight monthly declines.

• Petroleum and coal product sales climbed 6.2% MoM to $7.2B, following +11.6% in June, as refineries ramped up output after spring maintenance shutdowns; however, sales were still -12.7% YoY lower.

• Primary metals rose 3.5% MoM, with Quebec’s non-ferrous metals (ex-aluminum) reaching record levels, supported by higher prices and strong export demand (+19.3%).

• By province, Ontario sales rose 2.8% MoM (transportation +11.4%, petroleum & coal +7.9%), though still -0.4% YoY, while Quebec sales increased 3.4% MoM (+0.2% YoY).

• Total manufacturing inventories rose 0.8% to $121.2B, pushing the inventory-to-sales ratio down to 1.72 from 1.75 in June.

• Unfilled orders edged down -0.1% to $112.3B, driven by declines in miscellaneous (-14.1%) and plastics & rubber (-9.0%) subsectors.

• The capacity utilization rate slipped to 78.3% (vs 78.9% in June), with declines in chemicals (-6.2 pp) and transportation (-4.2 pp) partly offset by gains in petroleum & coal (+6.4 pp).