Statistics Canada says manufacturing sales rose 3% in March to $73.6 billion, the highest level since January last year, boosted by higher energy prices.
The agency says sales rose in nine of the 21 subsectors it tracks, led by the petroleum and coal product and transportation equipment subsectors.
Sales of petroleum and coal products rose 22.7% to $9.4 billion in March, driven largely by higher prices, as sales in real terms fell 3.5%.
Sales of transportation equipment rose 6% to $11.4 billion, helped by a 15% gain in the motor vehicle industry group as auto production picked up in the month.
Excluding the petroleum and coal product subsector, total manufacturing sales rose 0.7% in March.
In real terms, total manufacturing sales gained 1% in March.