Manufacturing sales in Canada increased 1.6% to C$53.5 billion in August from the revised figure of C$52.7 billion in July, Statistics Canada said.

Sales were up in 8 of the 21 industries, with most of the monthly gain in sales attributable to higher sales in the transportation equipment, and petroleum and coal product industries.

Sales in the transportation equipment industry rose 8.2% to C$10.4 billion, primarily due to a 12.9% increase in motor vehicle sales and a 5.7% rise in sales of motor vehicle parts. Sales in the petroleum and coal product industry increased 3.2% to C$4.8 billion. Sales also increased in the primary metal, machinery, beverage and tobacco product and wood product industries.

Meanwhile, sales in the chemical and computer and electronic product industries were down.

Sales were up in eight provinces, with Ontario posting the largest increase of 2.8% and Alberta reporting an increase of 1.2%.

Inventories in the manufacturing sector remained virtually flat at C$73.9 billion in August. The inventory-to-sales ratio decreased to 1.38 in August from 1.40 in July.

Total unfilled orders for the manufacturing sector were also unchanged at C$86.2 billion in August, while new orders increased 4.4% to C$53.6 billion after three consecutive monthly declines.