OTTAWA -- Factory sales rose more than expected in October, lifted by aerospace and petroleum and coal products, Statistics Canada reported Wednesday.

Sales were up 2% during the month to $42.5-billion‚ marking the fourth increase in five months.

Most economists had expected a 1% gain in October. The September sales increase was revised to 1% from the previous estimate of 1.4%.

“Even with these recent gains, manufacturing sales remained 16.6% below October 2008,” the federal agency said.

Aerospace product and parts sales jumped 54.1% in October, following two months of steep declines, the agency said.

“Production in this industry has been particularly volatile over the past year.”

Petroleum and coal product sales rose 7.2%, with higher prices accounting for nearly all of the sales increases.

Motor vehicle sales were also higher, rising 2.9%. It was the third increase in the past four months.

Canwest News Service