Statistics Canada says manufacturing sales fell 1.3 per cent to $57.2 billion in July as sales in the primary metal and motor vehicle industries moved lower.
The agency says sales were down in 11 industries in July, representing 66.8 per cent of total manufacturing sales.
Economists had expected a decline of 0.2 per cent, according to financial markets data firm Refinitiv.
Statistics Canada says primary metal industry sales fell 7.3 per cent in July as every primary metal industry except alumina and aluminum production and processing reported lower sales.
Motor vehicle industry sales dropped 4.7 per cent due in part to an extended shutdown at a major assembly plant for maintenance projects to support new model production.
Manufacturing sales in constant dollars were down 1.6 per cent in July, indicating that a lower volume of products was sold.