By Don Nico Forbes


Canadian manufacturing activity picked up somewhat in December, driven by sales of motor vehicles and food products.

Factory shipments rose 0.6% on month to 71.0 billion Canadian dollars ($52.14 billion), Statistics Canada said Monday. This compares with a 1.3% drop in November.

The result was roughly in line with the data agency's advance estimate.

On year, manufacturing sales fell 1.1%.

Shipments were driven by a rebound in car sales, following two consecutive months of declines, which rose 12%. This was largely due to the reopening of a major auto assembly plant in Ontario, which was operating partially in the previous two months amid semiconductor chip shortages.

The manufacturing sector was hit hard in 2025 by the Trump administration's tariffs, which dented demand in the U.S. Uncertainty is expected to remain high this year, with the North American free trade pact up for review.

On Jan. 28, the Bank of Canada voted to keep its benchmark interest rate unchanged at 2.25%, though senior officials have said maintaining this current level is conditional on the economy progressing in line with the central bank's outlook.

Officials said the timing and direction of the next change in the policy rate was uncertain given the risk of changes to the North American trade treaty.


Write to Don Nico Forbes at don.forbes@wsj.com


Corrections & Amplifications

This article was corrected on February 17, 2026 to clarify that Canada factory shipments fell a revised 1.3% in November. An earlier article misstated the percentage figure.

(END) Dow Jones Newswires

02-16-26 0855ET