(Adds details from report)
OTTAWA, Nov 16 (Reuters) - Canadian manufacturing sales rose more than expected in September, though that was driven largely by gains in the transportation equipment sector and an increase in overall prices, data from Statistics Canada showed on Wednesday.
The 0.3 percent increase topped economists' expectations for a gain of 0.1 percent, even as it marked a slowdown from August's hefty 0.9 percent increase.
The volume of goods sold in September, which strips out the effect of changes in price and is watched by economists, declined 0.2 percent.
Although sales were up in 12 out of 21 industries, a 1.5 percent increase in the transportation equipment sector accounted for more than 85 percent of the total gain in manufacturing sales.
The forward-looking new orders measure rose 2.3 percent on increases in the transportation equipment and machinery sectors. Inventories also rose 0.5 percent, with increased stocks seen in the transportation equipment, food and chemical industries.
Statistics Canada revised seasonally adjusted data for sales, inventories and orders going back to January 2011, while the unadjusted figures were revised back to January 2013.