Canada’s manufacturing sales declined by 0.9% to CAD 68.7 billion in May 2025, reaching their lowest level since January 2022 - though the drop was smaller than the initially projected 1.3% decrease. The decline was primarily driven by reduced sales in the petroleum and coal products sector (-8.4%) and the machinery sector (-2.7%). Excluding petroleum and coal products, total manufacturing sales dipped slightly by 0.1%. These declines were partially offset by a 6.9% increase in the production of aerospace products and parts. On a year-over-year basis, total manufacturing sales were down 4.1% in May. In constant dollar terms, sales fell 0.7%, reaching their lowest level since October 2021. Meanwhile, the Industrial Product Price Index declined by 0.5%.