Canadian retail sales rebounded by 0.5% in August from July, pushed up by higher sales at gas stations and auto dealerships, Statistics Canada said on Tuesday.
The increase was greater than the 0.3% advance predicted by analysts. Statscan revised July's drop to 0.5% from an initial 0.6% fall.
The strong data will reinforce market expectations of a return to growth in the third quarter after a 0.4% decline in second quarter GDP on an annualized basis.
Gas stations recorded a 1.9% increase in August, more than offsetting declines in June and July. Sales at motor vehicles and parts dealers increased by 1%.
Sales were higher in six of 11 subsectors, accounting for 70% of the total, and in volume terms sales rose by 0.3%.
