Retail sales rose 0.8 per cent in August to $34.5 billion, offsetting July's 0.6 percent decline.
The bulk of the increase came from higher sales at gasoline stations and new car dealers, Statistics Canada said Thursday. Without those sectors, sales were flat.
Overall, August sales were 3.7 percent lower than a year earlier.
Retail sales increased 0.4 percent by volume in August, compared with July.
The numbers confirm that consumers are becoming more willing to spend, TD economist Grant Bishop said in a commentary.
The largest increase came in the automotive sector, which rose 2.4 percent, with gasoline stations leading the way at 3.9 percent.
Sales in the building and outdoor home supplies sector were up 0.5 percent from the previous month. But sales declined 0.4 per cent at general merchandise stores and 0.2 percent at miscellaneous retailers.
Retail sales rose in eight provinces, with New Brunswick posting the largest increase at 3.2 percent. Sales declined 0.9 percent in Newfoundland and Labrador and 0.2 percent in Alberta.
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