Manufacturing
sales rebounded in February from their January lows, according to the latest data from Statistics Canada. Total manufacturing sales were up 3.1 per cent compared to a 3.1 per cent decline in January.
Transportation equipment sales led the rise. Motor vehicle sales rose 43.4 per cent and motor vehicle parts sales rose 9.9 per cent — though both gains were expected as planned retooling and maintenance shutdowns at some Ontario automakers ended near the beginning of February.
The shutdowns went longer than anticipated this year, as plants did not reopen in the January window.
“That’s why you really saw that big swing in January and February,” said Alan Arcand, chief economist at Canadian Manufacturers and Exporters. “I wouldn’t read too much into the big increase in February. It’s not a sign of better things to come.”
Compared to February 2025, sales in the transportation equipment industry were down 10.2 per cent.
Arcand believes
United States
‘
trade
policy has impacted total manufacturing sales outcomes.
“So year over year in February, manufacturing sales were down 4.6 per cent, which highlights the impact of U.S.
tariffs
,” he said.
Sales in the primary manufacturing industry were up 4.9 per cent. This number might further increase as tariffs for manufactured goods made with steel and aluminum have been cut to 25 per cent, Capital Economics said in a note.
One of the biggest indicators for the future of the manufacturing industry will come at this year’s Canada–United States–Mexico Agreement (
CUSMA
).
“It’s really difficult to make any long-term plans in such an environment. That’s why we’re not surprisingly seeing investment in the industry freeze up over the last year,” said Arcand.
A range of potential outcomes might come from the upcoming CUSMA renegotiations. A 16-year extension of the current agreement would create the most certainty for Canadian manufacturers. Other possibilities include a significant reworking of the agreement, a lack of extension leading to yearly reviews, or a member state completely withdrawing from CUSMA.
Rise in manufacturing sales in February 'not a sign of better things to come'
2026-04-15 23:00:12
