Canadian factory sales rebound in March

Canada's manufacturing sales blew past expectations to grow 1.9 percent in March from February as shipments of petroleum and coal products jumped to their highest level in more than 3-1/2 years, Statistics Canada said on Wednesday.

Analysts surveyed by Reuters had forecast, on average, a 0.3 percent increase in sales at the factory gate in the month.

Sales, which reached $49.7 billion have still not regained their pre-crisis level as the sector struggles with a sluggish U.S. market and the effects of a strong Canadian dollar.

Manufacturers were among the hardest hit by the 2008-09 recession when demand from their top market dried up, exacerbating a trend that had seen Canada's manufacturing base steadily shrink in favor of services.

New orders for manufactured goods rose for the second straight month in March, up 2 percent, while the backlog of unfilled orders also rose 2 percent to a level last seen in March 2009.

Inventory levels fell 1.2 percent, bringing the inventory-to-sales ratio to 1.30 in March from 1.34 in February.