Canada’s manufacturing sales fell 0.4% month over month to C$78.7 billion in July 2026, following a 0.1% rise in June and missing estimates for a 0.2% decline. Sales fell in eight of 21 subsectors, led by a 6.6% drop in chemical products, driven by lower sales in six of seven industry groups, particularly resin, synthetic rubber, and artificial and synthetic fibres and filaments. Food manufacturing sales fell 1.4%, largely due to lower grain and oilseed milling sales. Petroleum and coal products sales rose 1.9%, driven by higher prices, partly reflecting renewed US-Iran tensions and concerns over crude shipments through the Strait of Hormuz. Sales declined in six provinces, led by Alberta (-2.7%) and Manitoba (-7.7%). Manufacturing sales were 10.9% higher year over year.