For the month of October, as confirmed by official figures shared by Statistics Canada, factory sales recorded much higher than expected growth, mainly on the back of aerospace and petroleum and coal products.

For the month, sales gained 2% to hit $42.5 Billion, making this the fourth increase in the past 5 months.

Most economists had expected the growth to be around 1% for October, after September sales were revised from the earlier estimate of 1.4% to 1%.

"Even with these recent gains, manufacturing sales remained 16.6 per cent below October 2008", said the Federal Agency.

Products and parts related to Aerospace grew by 54.1% for the month, after two consecutive months of steep declines, as confirmed by the agency. "Production in this industry has been particularly volatile over the past year", it was shared. A 7.2% hike was recorded by sales of petroleum and coal products, and prices for these accounted for almost the complete sales increase.

"This was a very strong report, and it points to further positive momentum in Canadian manufacturing sector activity and suggests that the manufacturing sector will add favorably to Canadian economic activity in October", said Millan Mulraine, Economics Strategist at TD Securities.