Canadian retail sales advanced at their fastest monthly rate in more than six years in February, Statistics Canada reported today.

Surging auto sales, combined with strong gains in the clothing, furniture, general merchandise and food sectors led total retail sales to new heights.

Consumer spending in retail stores advanced 2.3% in February to $27 billion, after increasing 1.7% in January. February’s gain was the strongest monthly increase since December 1997, when retail sales rose 3.6 %.

Sales at motor and recreational vehicle dealers ended a six-month slide in February with a gain of 8.3%.

“Sales by these retailers in February stood at about the level of last September,” Statistics Canada said. “Motor and recreational vehicle dealers experienced record sales levels in 2002 and in the first half of 2003.”

Clothing sales remained strong in February, increasing by 2.4% after growing by 1.5% in January. Furniture store sales grew by 1.6% in February, following a 1.4% drop the previous month.

In a separate release, StatsCan said wholesale sales edged down slightly in February, slipping 0.3% to $36.8 billion in goods and services. This is the third decrease for wholesalers in the past four months.

As in the previous month, February’s decline was largely attributable to the motor vehicles, parts and accessories sector. Excluding that sector, sales rose 0.4%.

Since February 2003, the agency said wholesale sales have generally been declining, with much of the decrease attributable to the automotive sector. Excluding that sector, the average growth of total sales was 0.2% for the last 12 months.

In February, 6 of the 11 trade groups, representing approximately 66% of total sales, registered a decline. In addition to the automotive sector (-3.6%), sectors contributing the most to the decrease in value terms were computers, software and other electronic equipment (-3.1%) and beverage, drug and tobacco products (-1.7%).