(RTTNews) - Canadian manufacturing shipments rose more than expected in September, helping producers clear out inventories, according to official data released Friday morning.

Statistics Canada said manufacturing sales rose 1.4% in September to $41.7 billion, largely reflecting increases in the motor vehicle industry.

Economists were expecting sales to rise 0.4% after dropping a revised 1.8% in August.

The agency noted that manufacturing sales have increased in three of the past four months, after dropping to a recent low of $38.5 billion in May. Despite the recent gains, sales remained 18.6% below September 2008 levels.

Most of the manufacturing gains in September were in the motor vehicles and motor vehicle parts industries. Other durable goods industries, such as primary metals and fabricated metals, also contributed to the increase.

In September, motor vehicle sales increased by 16.4% to $3.8 billion, the highest level since September 2008. Sales had fallen to as low as $1.6 billion in January 2009, due to extended shutdowns and poor market conditions.

Sales in Saskatchewan jumped 16.1% compared with August. Strength in manufacturing in September was mainly as a result of a later than normal harvest this year, which had an impact on food manufacturers.

Inventory levels fell for an eighth consecutive month, decreasing 1.9% in September to $59.9 billion. This was the lowest level for inventory stockpiles since February 2000.

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