Canadian Manufacturing Monthly Report, January 2026

Manufacturing Sales Experience Significant Decline in January 2026

After a modest 0.4% rise in December, total manufacturing sales dropped sharply by 3.0% in January, reaching $68.7 billion—the lowest figure recorded since May 2025.

Out of 21 manufacturing subsectors, 11 saw decreased sales in January. The most notable declines were in transportation equipment, which plummeted by 18.2%, and machinery, which fell by 5.6%.

Within the transportation equipment category, motor vehicle sales experienced a steep decrease of 38.9%, marking their lowest point since September 2021. Sales of motor vehicle parts also fell, dropping 7.7% during the month.

Several major auto assembly facilities in Ontario prolonged their winter closures from December into January to finalize retooling for new models and update production lines.