Canadian retail sales totalled $36.3 billion in September, up 1.1% from August and the strongest rise in sales in eight months.

Sales by new car dealers were up for the first time since January, accounting for most of this growth, Statistics Canada reported Tuesday.

If price changes are factored in, retail sales in terms of volume rose by 0.7%, StatsCan said.

In September, five of the eight sectors posted higher sales and they accounted for approximately 75% of retail sales.

Sales in the automotive sector were 2.2% higher in September, largely owing to a 2.9% increase in sales by new car dealers. The number of units sold in September was up for both passenger cars and trucks, StatsCan said.

The 1.7% rise in sales by gasoline stations in September continued the strong upward trend, driven by gasoline prices.

Increases of over 1% were also posted by the general merchandise stores sector and the food and beverage stores sector. These rises were influenced by the rapid growth in food prices since early 2008.

The most substantial decrease in sales in September was in the building and outdoor home supplies stores sector. This was the first drop in sales in this sector since April 2008.

An increase in Quebec sales led widespread gains as seven provinces registered sales increases above 1% in September.

Quebec posted the strongest increase among the provinces, with a 2.3% sales gain in September. This marked the fifth sales increase in six months.

After two consecutive months of declines, sales in British Columbia increased 1% in September.

Ontario posted its highest sales increase since April 2008, with a 0.4% rise in September.

IE