Statistics Canada released manufacturing shipments on Friday. Canadian manufacturing shipments climbed 1.7% in December, beating forecasts of a 0.9% decrease, after a 1.3% drop in November.
November's figure was revised up from a 1.4% decline.
The increase was driven by higher sales in the transportation equipment industry. Sales of motor vehicles increased 9.0%, while sales of machinery rose 5.2% in December, the highest level since November 2011.
Food sales rose 1.8% in December, while sales of chemical products climbed 2.5%.
Sales in the petroleum and coal product industry declined 9.3% in December. That was the sixth consecutive decline.