Canada’s manufacturing sector in May posted its biggest monthly sales increase since March 2007, Statistics Canada said today.

Sales for May rose by 2.7% to $51.4 billion, marking the fourth increase in five months.

Gains were widespread as sales increased for 16 of 21 industries, representing 94% of total manufacturing sales.

Sales of petroleum and coal products rose by 9.2%, accounting for almost half of the growth in manufacturing sales in May. Sales climbed to $7.7 billion, and have increased by almost 20% since March 2008. Statistics Canada said rapidly rising prices accounted for most of this growth, as prices for petroleum and coal products increased by about 17% during the same period.

Other sectors seeing higher May sales included primary metal manufacturers, which saw a 3.1% gain, and chemical products, which rose 3.5% on strength in fertilizer prices.

The only notable decrease for May was a 13.1% drop in sales by textile product mills. The drop came as manufacturers in the sector continued to struggle as they faced increased international competition, with sales falling by as much as 50% since 2003, Statistics Canada said.