Following a 0.3% decrease in July, total manufacturing sales increased 1.5% to $79.9 billion in August, on increased sales in 12 of the 21 subsectors, led by the primary metal (+14.0%) and chemical (+4.4%) subsectors. The increases were partially offset by a 2.6% decline in transportation equipment sales. On a year-over-year basis, total manufacturing sales were up 14.2% in August, according to a report by Statistics Canada.
In constant dollars, total manufacturing sales were unchanged in August, while the Industrial Product Price Index increased 1.3%, it said.
Sales in the primary metal subsector lead the increase
"Sales in the primary metal subsector reached their highest level on record, rising 14.0% to $7.6 billion in August. The gain was driven by higher sales volumes and prices, with sales in constant dollars increasing 9.1%. Growth was concentrated almost entirely in the non-ferrous metal (excluding aluminum) production and processing industry group. Higher production of non-ferrous metals in 2026 has been supported by stronger global demand for copper, silver, and other non-ferrous metals, driven by electrification, investments in renewable energy, and expanding industrial applications in advanced technologies. On a year-over-year basis, total sales in current dollars in the primary metal subsector increased 27.8% in August," said the report.
"In the chemical subsector, sales increased 4.4% to $6.2 billion in August, following a 4.4% decline in July. Higher sales of basic chemicals contributed the most to the increase. The gain was largely attributable to higher prices, as sales of chemical products in constant dollars rose 0.4% in August. The gain coincided with a 12.7% increase in exports of basic chemicals. With the increase in August, current-dollar sales of chemical products were up 16.7% compared with the same month a year earlier.
"Transportation equipment sales declined 2.6% to $12.0 billion in August, marking the second consecutive monthly decrease. Within the subsector, motor vehicle sales fell 4.0%, while sales of motor vehicle parts declined 4.2%. The decrease in motor vehicle sales reflected weaker-than-usual seasonal sales activity in August as well as an extended summer shutdown in a major auto assembly plant. In the aerospace product and parts industry group, production decreased 4.8% in August, down to its lowest level since February 2026. Exports of aircraft, aircraft engines, and aircraft parts also fell sharply, declining 18.3% in August."
Total inventories increase
Total inventories edged up 0.2% to $127.7 billion in August, continuing the upward trend observed since January 2026. The increase in August was driven by higher goods in process (+0.8%) as inventories of raw materials were unchanged and finished product inventories declined 0.1%. Increased inventories of fabricated metals (+2.8%) and machinery (+1.3%) were largely responsible for the gain in total inventories in the month, said Statistics Canada.
The inventory-to-sales ratio fell from 1.62 in July to 1.60 in August. This ratio measures the time, in months, that would be required to exhaust inventories if sales were to remain at their current level, it added