Manufacturing sales reached their highest level since January 2025, rising 3.0% to $73.6 billion in March. Sales rose in 9 of the 21 subsectors, led by the petroleum and coal product (+22.7%) and transportation equipment (+6.0%) subsectors. Excluding the petroleum and coal product subsector, total manufacturing sales rose 0.7% in March. With the overall gain in March, total manufacturing sales on a year-over-year basis increased 3.5%, reported Statistics Canada.
In real terms, total sales increased 1.0% in March, while the Industrial Product Price Index was up 2.4%, said the federal agency.
On a quarterly basis, manufacturing sales edged up 0.1% to $214.1 billion in the first quarter of 2026, the third consecutive quarterly increase. The petroleum and coal product (+4.9%) and primary metal (+4.3%) subsectors were the main contributors to the quarterly increase. Meanwhile, transportation equipment sales (-6.5%) declined the most, it said.
“Sales in the petroleum and coal product subsector rose 22.7% to $9.4 billion in March, marking their highest level since September 2023. The increase was driven largely by higher prices, as sales in real terms fell 3.5%. Prices for energy and petroleum products grew by 27.4% in March amid increased geopolitical tensions in the Middle East, which disrupted energy markets and shipping routes through the Strait of Hormuz. Petroleum product sales on a quarterly basis were up 4.9% in the first quarter of 2026, marking the third consecutive quarterly gain. Exports of refined petroleum energy products rose 14.4% in March,” explained Statistics Canada.
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“Following a 19.8% increase in February, sales of transportation equipment rose 6.0% to $11.4 billion in March. Within the transportation equipment subsector, the motor vehicle industry group posted the largest gain (+15.0%). Auto production increased in March following the completion of retooling at a major auto manufacturer and the addition of a new production shift in another motor vehicle assembly plant. Exports of motor vehicles and parts increased 5.4% in March. Despite the gain observed in March, sales of motor vehicles on a quarterly basis were down 13.6% in the first quarter of 2026.
“Production of aerospace products and parts reached their highest level on record, rising 5.2% on a month-over-month basis to $3.0 billion in March. Canada’s aerospace industry continues to grow in 2026 mainly due to strong global demand for commercial and business aircraft, aircraft parts and maintenance services. On a quarterly basis, aerospace production rose 1.4% to $8.7 billion in the first quarter of 2026. Exports of aircraft, aircraft engines and aircraft parts rose 1.2% in March.”
Manufacturing sales rose in eight provinces in March with Ontario and Alberta posting the largest increases. Manufacturing sales in Ontario increased 2.2% to $31.4 billion in March, marking a second consecutive monthly gain. On a quarterly basis, total manufacturing sales in Ontario declined 2.1% in the first quarter of 2026, with transportation equipment contributing the most to the overall decrease. In Alberta, sales increased 4.4% on a month-over-month basis to $8.9 billion in March. With the overall increase in March, total manufacturing sales in Alberta rose 4.7% on a year-over-year basis while they were down 0.2% in the first quarter of 2026, said Statistics Canada.
Mario Toneguzzi
Mario Toneguzzi is Managing Editor of Canada’s Entrepreneur. He has more than 40 years of experience as a daily newspaper writer, columnist, and editor. He was named in 2021 and 2024 as one of the top business journalists in the world by PR News. He was also named by RETHINK to its global list of Top Retail Experts 2024, 2025 and 2026.
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