Manufacturing sales fall 2.8 percent in April, the biggest monthly decline since 2023

Statistics Canada says manufacturing sales fell by 2.8 percent in April, the biggest monthly fall since October 2023, as the tariff controversy with the United States hit the industry.

The agency says that manufacturing sales stand at its lowest level since January 2022 after a second straight monthly drop.

Petroleum and coal products (below 10.9 percent) decline, motor vehicles (8.3 percent below) and primary metals (below 4.4 percent) promoted the fall.

Senior economist Andrew Grantham of CIBC Capital Markets wrote, “Both manufacturing and wholesale sales were weaker than expected in April, the monthly GDP can be less modified relative to its first estimate.”

While the trade war stopped in March, April marked the first month of tariff from the United States in many regions – especially targeting Canada’s steel, aluminum and motor vehicle industries.

Half of the manufacturers surveyed by Statistics Canada say they were affected by tariffs in some form in April, as 43 percent of wholesale vendors.

A separate release from Statistics Canada says that bulk sales fell by 2.3 percent in April, with motor vehicle parts and accessories sub -department led the drop.