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Wholesale sales (excluding energy and grains) came in stronger than expected, rising by 0.4% in September, according to new data from Statistics Canada.

The national statistical agency reported that sales were up in four out of seven sectors, led by the auto and auto parts industry, which saw sales rise by 2.2% in September.

Analysts expected sales to come in closer to flat, amid slowing economic momentum.

On an annual basis, wholesale sales were up by 1.6%, StatsCan also reported.

For the third quarter, wholesale sales were up by 1.0% from the second quarter to $247.1 billion.

Sales for the third quarter were also 1.1% higher compared with the same quarter last year.

The auto sector led the way in the third quarter, with sales rising 7.3% to $43.1 billion, StatsCan said.

At the same time, wholesale inventories were down by 1.6% in September to $126.2 billion, and the inventory-to-sales ratio fell from 1.55 to 1.52 in the month.