Canada's factory-sector receipts strengthened in April, with total manufacturing sales increasing 4.2% to C$77.1 billion, following a 3.4% gain in March, Statistics Canada said on Monday. Activity expanded across most of the industry, with 17 of the 21 subsectors registering higher sales.
The largest contributor to the monthly increase was the petroleum and coal products subsector, which surged 22.6% to hit a record C$11.8 billion in April. That advance reflected primarily higher volumes: sales measured in constant dollars rose 17.5%. Several refineries boosted output after maintenance-related shutdowns in March. The ongoing closure of the Strait of Hormuz continued to exert upward pressure on energy and petroleum product prices in April, reflecting heightened supply concerns in international markets. Exports of refined petroleum energy products, including liquid biofuels, recorded a notable 56.3% month-over-month increase.
Food product sales also reached an all-time high, climbing 2.9% to C$13.9 billion in April, with real sales up 2.4%. The largest contribution within the food subsector came from higher sales in grain and oilseed milling.
Not all subsectors expanded. Primary metals posted the biggest decline, falling 4.6% to C$6.3 billion. Declines occurred across all primary metal industry groups except for foundries.
At the provincial level, Alberta recorded the strongest gain, with manufacturing sales jumping 16.7% to a record C$10.5 billion in April. Quebec also set a record, with sales rising 4.2% to C$20.0 billion, a rise driven largely by a 24.8% increase in petroleum and coal products. Manitoba experienced the largest provincial setback, with sales down 6.1% to C$2.3 billion, mainly because of reduced production of aerospace products and parts.
Inventories across the manufacturing sector increased 0.5% to C$125.0 billion in April, with 13 of the 21 subsectors reporting higher stocks. The ratio of inventories to sales declined from 1.68 in March to 1.62 in April, marking the lowest reading since January 2023.
Meanwhile, unfilled orders reached a record high, rising 1.3% to C$123.2 billion. The growth in backlogs was driven mainly by the transportation equipment and primary metal subsectors.
Analyst note - The April release shows a pronounced rebound in petroleum-related manufacturing activity and continued strength in food processing, set against pockets of weakness in primary metals and aerospace-related production. Inventories rose modestly even as the inventory-to-sales ratio tightened, and unfilled orders climbed to a new peak.