Canada Factory Sales Drop 0.4% in July, First Fall in Six Months — Update

By Robb M. Stewart

OTTAWA--Canadian manufacturing activity retreated in July, denting a run of improving sales in recent months.

The value of factory shipments declined 0.4% from the month before to a seasonally adjusted 78.71 billion Canadian dollars, the equivalent of about US$56.75 billion, Statistics Canada said Monday. However, compared with a year earlier, manufacturing sales in July were 10.9% higher.

The monthly drop, which was sharper than the data agency's advance estimate for monthly decline of 0.2%, marks the first decline in trade in six months.

Sales in volume terms were down 1.4% for the month and up a modest 0.4% on a year prior.

Statistics Canada's manufacturing survey showed a drop in shipments in eight of 21 industry segments it tracks, led by a 6.6% fall in chemical sales following increases the previous four months.

Food-manufacturing sales were down 1.4% for the latest month, largely due to weakness in grain and oilseed milling and following recent strong growth with increased demand from the U.S. and expanded trade with China

Sales of petroleum and coal were up 1.9% in July thanks to higher energy prices amid renewed tensions in the Middle East that month. Compared with a year earlier, petroleum and coal sector sales jumped 43.5%.

Inventory levels held by factories rose 0.3% during July to a record high C$127.54 billion, the agency said. Inventory levels have trended upward since January.

Unfilled orders, the stock of orders that will contribute to future sales if they aren't canceled, also hit an all-time high, rising 1.9% to C$134.65 billion, a sixth consecutive monthly rise. New orders were up 0.7% during the month.

Write to Robb M. Stewart at robb.stewart@wsj.com

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September 14, 2026 09:08 ET (13:08 GMT)