The 0.5 percent increase in manufacturing sales topped economists' forecasts for a 0.3 percent decline, while volumes rose 0.7 percent.

The data was "modestly positive for the Canadian dollar," Nick Exarhos, an economist at CIBC Capital Markets, said in a research report. "But the narrow scope of the increase and the still troubling trend in export volumes continues to point to reasons for concern ahead."

Prices of oil, one of Canada's major exports, dipped on rising US crude production and inventories.