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Canadian retail sales rebounded by 0.5 percent in August from July, pushed up by higher sales at gas stations and auto dealerships, Statistics Canada said Tuesday.
The increase was greater than the 0.3 percent advance predicted by analysts. Statscan revised July's drop to 0.5 percent from an initial 0.6-percent fall.
The strong data will reinforce market expectations of a return to growth in the third quarter after a 0.4 percent decline in second quarter GDP on an annualized basis.
Gas stations recorded a 1.9-percent increase in August, more than offsetting declines in June and July. Sales at motor vehicles and parts dealers increased by 1.0 percent.
Sales were higher in six of 11 subsectors, accounting for 70 percent of the total, and in volume terms sales rose by 0.3 percent.