Canada’s Manufacturing Slump Deepens Amid Trade Headwinds

Canadian factory activity contracted for the third consecutive month as April’s preliminary manufacturing sales fell 2.0% month-over-month, according to Statistics Canada’s partial survey data. The decline follows March’s 1.4% drop - the steepest in seven months - as U.S. steel and aluminum tariffs begin weighing on export-reliant sectors.

While new orders showed tentative signs of recovery with a 1.0% uptick in March, inventory drawdowns of 0.7% suggest producers remain cautious. The metals sector reversal proved particularly damaging, ending four months of gains as trade barriers took effect.

S&P Global’s supplementary indicators paint an even bleaker outlook for industrial production, potentially signaling broader economic softening. Market analysts will scrutinize the complete dataset when Statistics Canada releases finalized figures on June 13.