Statistics Canada says retail sales rose 0.9 per cent to $66.4 billion in July, helped by stronger new car sales.
The agency says sales were higher in seven of the nine subsectors it tracks, with sales at motor vehicle and parts dealers up 2.2 per cent, boosted by a 2.3 per cent increase in sales at new car dealers.
Sales at gasoline stations and fuel vendors fell 0.6 per cent for the month, as sales for the subsector in volume terms fell 1.7 per cent.
Core retail sales — which excludes gasoline stations and fuel vendors and motor vehicle and parts dealers — rose 0.6 per cent in July.
In volume terms, StatsCan says retail sales increased 1.0 per cent in July.
Looking forward, the agency says its preliminary estimate for retail sales in August pointed to a gain of 0.5 per cent for the month, thought it cautioned the figure will be revised.