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Car sales boost June retail sales

Canadian retail sales were up 0.7% in June, driven largely by vehicle sales, data showed Tuesday.

There were $37.8 billion in retail purchases in June, adjusted for seasonal factors, Statistics Canada said. The overall figure was in line with economists' forecasts.

May's results were revised up to a gain of 0.3% from 0.1%.

However, the auto sector was more of a factor in June than anticipated. Economists had expected sales excluding auto would be up 0.5%. Instead, they fell 0.1%.

Statistics Canada said sales were up 1.6% in June, largely as a result of new-vehicle purchases at lower prices.

Purchases from dealers of vehicles and parts were up 3.4% in June, which saw the biggest increase among all major categories.

The next biggest gain was in building materials and garden equipment, where transactions rose 2.1%.

Sales at gasoline stations were down 1.3% after four straight increases.