Quebec manufacturing sector remained under pressure as trade tensions eased

An employee is seen working at Marmen Inc., in Trois-Rivieres, Que., Tuesday, April 22, 2025. Marmen Inc. specializes in high-precision machining, fabrication and mechanical assembly. (Sean Kilpatrick/The Canadian Press)

The impact of trade tensions on the economy eased in June, but the manufacturing sector remained under pressure during the last month of the second quarter.

Quebec’s real gross domestic product (GDP) declined by 0.1 per cent in June, according to data released Wednesday by the Quebec Statistics Institute (ISQ). This follows a 0.4 per cent decline in May.

In June, goods industry production declined by one per cent, while service production increased by 0.1 per cent.

More than half of the economic sectors experienced a decline, 13 out of 20. The decline was mainly attributable to the manufacturing and construction sectors. Wholesale trade was the sector that recorded the strongest increase at two per cent.

In the second quarter, Quebec’s GDP declined by 0.6 per cent. The period, which includes the months of April, May and June, was marked by trade tensions with the Trump administration and economic uncertainty.

Production in the goods industries fell by 2.5 per cent in the second quarter, while production in the services sector remained relatively unchanged.

In Canada, the economy declined by 0.2 per cent in the second quarter.

This report by The Canadian Press was first published in French on Sept. 24, 2025.