(Recasts lead, adds analyst comment)
OTTAWA, Dec 12 (Reuters) - Canada's new motor vehicle sales jumped 2 percent in October from September, easily trumping the last record in sales set in December, 2001 and exceeding market expectations, Statistics Canada said on Thursday
But the government statistics agency said November looks less rosy. It said 148,626 vehicles were sold in October, 2,874 more cars and trucks than in September. That level of sales surged past the last record set in December, 2001 when 146,363 vehicles were sold, Statscan said.
"Industry data had already pointed to a rebound in October sales after September's decline, but not by as much as this. October's sales levels are running 11.1 percent ahead of year-earlier levels," said Allan Seychuk, economist at RBC Financial Group.
October's sales were driven by the delivery of 2003 models, incentive programs and inventory clear-outs, Statscan said.
Economists watch motor vehicle sales as the auto sector represents roughly half of Canada's manufacturing sector.
"Preliminary figures from the auto industry indicate that the number of new motor vehicles sold dropped significantly in November, almost entirely the result of a sharp drop in the number of new passenger cars sold," Statscan added.
Truck sales jumped 3.7 percent in October after a slight decline in September and a 4.9 percent surge in August. A total of 68,803 trucks were sold in October, setting a new monthly record. Trucks include minivans, sport-utility vehicles, light and heavy trucks, vans and buses.
Manufacturers reported dealer sales of 79,823 new cars in October, up 0.6 percent from September, Statscan said.
Sales of North American-built cars decreased for a second month, down 1.3 percent from September. A 4.9 percent gain in the sale of overseas-built cars pulled total car sales to a record level in October.