Gains in the automobile industry helped manufacturing sales rise 1.4 per cent to $41.7 billion in September, Statistics Canada said Monday.

Car sales rose 16.4 per cent in September to $3.8 billion for the month, their highest level since September 2008. (Canadian Press)

After dropping to a recent low of $38.5 billion in May, sales have now increased in three of the last four months.

Despite the recent gains, manufacturing sales remained 18.6 per cent below September 2008 levels, the data agency said.

Motor vehicle sales increased by 16.4 per cent to $3.8 billion during the month, the highest level since September 2008. Sales had fallen to as low as $1.6 billion in January 2009 amid extended plant shutdowns and poor market conditions.

Motor vehicle parts sales gained 13.7 per cent in September, reflecting rising motor vehicle production.

Sales advanced in 14 of the 21 manufacturing industries the survey monitors, but excluding motor vehicles, parts and accessories, total manufacturing sales edged down 0.4 per cent during the month.

Inventories fall

Inventory levels fell for an eighth consecutive month, decreasing 1.9 per cent in September to $59.9 billion. That marks the lowest level for inventory stockpiles since February 2000.

The inventory-to-sales ratio decreased to 1.44 in September, down from 1.49 in August. September's rising sales and falling inventory levels pulled the ratio down to the lowest level since November 2008. The inventory-to-sales ratio — a measure of the time in months required to exhaust supplies at current levels — had recently been as high as 1.63 last May.