Manufacturing sales rose 2.7 per cent to $46.7-billion in July after three straight declines.
Statistics Canada reports more than three-quarters of the sales gains were in Ontario.
Constant-dollar manufacturing sales were up 2.8 per cent.
Higher sales were reported in 15 of 21 industries, representing 74.8 per cent of total manufacturing.
The petroleum and coal products, primary metal and fabricated metal product industries led the gains.
Production fell 17.5 per cent to $946-million in the aerospace product and parts industry, offsetting a portion of the gains in manufacturing sales.
Manufacturing sales were up in seven provinces in July, with Ontario, Alberta and Quebec reporting the largest provincial sales increases in dollar terms.
Nationally, inventory levels edged down 0.1 per cent, the first decline since September 2010. Lower inventory levels were reported by manufacturers in 13 of 21 industries.
New orders increased 1.3 per cent in July to $48.1-billion, led by gains in the primary metal, machinery, fabricated metal product, and petroleum and coal product industries. The increase was mostly offset by a decline in the aerospace product and parts industry.