Statistics Canada Tuesday provided an advance estimate for April manufacturing sales, which increased 4.6% month over month.
The largest increase was in the oil and coal product subsector, noted Canada's statistical agency in a statement.
This estimate was calculated based on a weighted response rate of 72.3%, while the average final response rate for the survey over the previous 12 months has been 92.7%, added StatsCan.
The Canadian economy remains under pressure despite the resource sector's strong performance, as trade tensions with the United States continue to hold back non-resource exports, said National Bank of Canada.Amid this climate of uncertainty, the labor market is experiencing its worst start to the year since 2009 -- excluding the COVID-19 pandemic -- with widespread job losses, particularly acute in Quebec, noted the bank.Rising oil prices linked to geopolitical tensions are eroding household purchasing power, weighing on consumption, while rate increases and population contraction are further dampening real estate activity, stated National Bank.Despite the energy shock, underlying inflationary pressures remain contained in Canada, in stark contrast to the U.S., which argues for the Bank of Canada to maintain the status quo this year, added the bank.In National Bank's baseline scenario, the Canadian gross domestic product is projected to grow by 1.0% this year, supported by a renewal of the CUSMA trade deal, although trade uncertainty remains the main risk to the economic outlook.
Statistics Canada will publish the advance read on manufacturing activity for April at 8:30 a.m. ET on Tuesday, said Bank of Montreal (BMO).The sector previously just pulled off two strong months with gains in excess of 3% month over month, although volumes are still down from a year ago because of softness through the second half of 2025, noted the bank.Investors will also hear from the Bank of Canada on Tuesday, added BMO. External Deputy Governor Nicolas Vincent speaks at 8:20 a.m. ET on "trends in the labour market and structural change in the Canadian economy."