Canadian retail sales rebounded in August as consumers spent more for new cars, at supermarkets and for clothing among other things, data from Statistics Canada showed on Thursday.
Retail sales grew by 1 per cent to $70.40-billion in August from an upwardly revised drop of 0.7 per cent in July, the national statistics agency said.
An advance estimate for September showed that sales are likely to fall by 0.7 per cent.
Analysts polled by Reuters had forecast retail sales growth of 1 per cent in August and 1.3 per cent growth excluding automotive and parts sales.
Excluding the automotive category, which accounts for up to 28 per cent of the total retail sales, sales grew by 0.7 per cent, StatsCan data showed.
In volume terms, the monthly retail sales also clocked a similar 1 per cent gain, it said.
Retail sales, which include domestic sales of cars, furniture, food, gasoline and many other items, are considered an early indicator of gross domestic product growth and contribute around 40 per cent to total consumer spending.
Analysts and economists track the retail sales number closely to gauge the health of the economy.
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The biggest boost to retail sales in August came from the automotive sub-sector, which includes sales at new and used car dealers, automotive parts and accessories and tires. The category posted robust growth of 1.8 per cent led by sales of new cars, which jumped by 2.3 per cent.
Another sub-sector which posted solid growth was clothing and accessories, clocking a 3.2 per cent jump. This sector accounts for almost 6 per cent of total retail sales.
Food and beverages, the second biggest contributor to retail sales, was up 0.3 per cent led by purchases at supermarkets and grocery retailers.
Sales at fuel stations and sales of building materials registered a drop.