Canada’s Manufacturing Sales Surge as Energy Sector Leads March Gains

Canada’s manufacturing sector posted a strong performance in March, with energy-related industries emerging as the standout driver of growth a rebound fueled in no small part by turbulence half a world away.

Petroleum and coal product sales climbed 22.7 per cent last month, reaching $9.4 billion and hitting their highest point since September 2023, according to data released by Statistics Canada. The sharp uptick reflects the ripple effects of escalating geopolitical tensions in the Middle East, where disruptions to energy markets and shipping lanes through the Strait of Hormuz sent prices spiraling. Broadly, energy and petroleum product prices surged 27.4 per cent during the same period.

The gains weren’t limited to the energy corridor. Manufacturing sales rose across eight of Canada’s provinces in March, with Ontario and Alberta shouldering the heaviest lifting. Ontario’s manufacturing sector grew 2.2 per cent to reach $31.4 billion its second straight month of gains with transportation equipment sales jumping 8.1 per cent among the key contributors, alongside the 21.8 per cent surge in petroleum and coal products.

Alberta told a similar story. Sales in the province climbed 4.4 per cent month-over-month to $8.9 billion, with Statistics Canada attributing the increase primarily to chemicals, which rose 16.8 per cent, and petroleum and coal products, up 7.7 per cent. Within chemical manufacturing, the gains were anchored by stronger sales of basic chemicals, resins, synthetic rubber, and artificial and synthetic fibres and filaments.

Taken together, the March figures paint a picture of a manufacturing sector finding its footing though the energy sector’s outsized role as the engine of growth is a reminder of just how exposed Canada’s industrial output remains to the unpredictability of global markets.