Retail sales remained relatively stable in March, edging up 0.1% to about $35.5 billion after declining in February, Statistics Canada reported today.

A strong January contributed to a 1.8% increase in retail sales in the first quarter as retail sales continued a general upward trend sustained since 2004.

“Though showing some signs of moderating amid ebbing confidence, Canadian consumers are still doing their part to keep the economy out of recession. Spending fundamentals (employment, income, wealth, interest rates) remain sound,” wrote Sal Guatieri, senior economist at BMO Capital Markets, in a morning commentary.

A sales increase in the automotive sector was offset by a notable 2.6% drop in sales at clothing and accessories stores, largely due to unusually high snowfalls.

StatsCan said the long winter delayed consumer purchases of spring clothing.

The weather also seems to have had a dampening effect on sales by general merchandise stores and products like lawn and garden tools, and by building and outdoor home supplies stores.

All three components of the automotive sector were up as sales rose 0.4% in March, the fifth increase in six months.

There was a 0.7% rise in sales at gasoline stations for the month, while new vehicle sale rose 9.1% in the first quarter, the strongest growth rate in 10 years.

Taking price changes into account, retail sales in constant dollars were up 0.5% in March, indicating an increase in sales volumes.

Seven provinces reported sales gains in March, while sales in Quebec fell 3.1% for the month. However, sales in Quebec were up 1.9% for the first quarter compared a year earlier.

“In the final analysis, despite the weakness in the headline numbers, the significant rebound in real retail sales will mean that the sector will provide some much needed boost to Canadian March GDP, wrote Millan Mulraine, economics strategist at TD Securities, in a note. “And when this is factored in, we expect the March number to come in roughly flat.”