By Paul Vieira 



  OTTAWA--Canadian factory sales roared back in May, following steep declines in the previous two months tied to economic restrictions imposed because of the novel coronavirus. 


  Manufacturing sales climbed 10.7% in May from the previous month to a seasonally adjusted 40.19 billion Canadian dollars ($29.52 billion), Statistics Canada said Wednesday. Market expectations were for a 9% increase, according to economists at Bank of Nova Scotia. 


  Even with the solid gain in May, factory sales in Canada were 28.4% below February's level, or prior to authorities across Canada unveiling restrictions to contain the spread of Covid-19, the respiratory disease caused by the new coronavirus. In April, shipments plunged 27.9%, or the biggest month-over-month drop on record. 


  From a year-ago, May factory shipments fell nearly 32%. 


  In volume, or price-adjusted, terms, manufacturing sales rose 8.8% in May. 


  Statistics Canada added that capacity utilization in the factory sector climbed to 62.8% in May from 54% in the previous month--although well below the 76.8% mark recorded in February. 


  "The fact that the road back for the [factory] sector looks so long is an indication of how far the economy is from completely healing," said Royce Mendes, economist at CIBC Capital Markets. 


  The May report indicated sales climbed in 18 of 21 components tracked, led by the motor vehicles and motor-vehicle parts. Most auto-related plants re-opened in May and gradually resumed production. 


  Write to Paul Vieira at paul.vieira@wsj.com