* Sales fall more than twice as fast as expected

* Auto sector hardest hit but seen stabilizing soon

* Canadian dollar continues upward climb

* Bank of Canada expected to keep rates on hold (Adds analysts' comments, market reaction, details)

OTTAWA, July 15 (Reuters) - Plant shutdowns in Canada's auto and mining sectors caused factory sales to plummet in May to the lowest level in almost 11 years, setting the economy on track to show another sharp contraction in the second quarter.

Manufacturing sales fell 6 percent, more than twice as fast as expected, in May from April, Statistics Canada said on Wednesday. Sales totaled C$38.4 billion ($34 billion), the smallest number since November 1998.

The report follows figures that showed a dismal export performance in May, when Canada had the biggest trade deficit on record.

"To the extent that the export data reported last week was so weak, the contraction in manufacturing should not be much of a surprise," Charmaine Buskas, senior economic strategist at TD Securities, said in a note to clients.

"The wholesale softness in activity, across a broad cross section of industries is indicative of the deterioration in demand. This will continue to be a feature of manufacturing activity going forward as the U.S. economy continues to struggle back and the Canadian dollar remains on a firming trend," she said.