Canadian retailers began 2008 on a strong note, as sales increased 1.5% in January to an estimated $35.8 billion, Statistics Canada reported today.

This was the third consecutive month of strong gains in retail sales. Following moderate sales in mid-2007, retail sales have returned to the rapid growth that began in 2004, the government agency said.

“The exceptional weather fluctuations in December and January, the one percentage point reduction in the goods and services tax, and practices regarding the use of gift cards seem to have launched 2008 off to a good start for many retailers,” StatsCan said.

Although retail sales in all sectors were up, five of them posted increases of more than 1.0% in January.

Building and outdoor home supplies stores led the way at 3.2%, followed by clothing and accessories stores, up 2.9%, furniture, home furnishings and electronics stores, up 2.5%, the automotive sector, up 1.8%, and general merchandise stores, up 1.1%.

Food and beverage stores also experienced sizeable growth in January, up 0.9%.

On the strength of these increases, total retail sales, excluding sales by dealers of new, used and recreational vehicles and auto parts, rose 1.3% in January, the second strongest increase in eight months.

When price changes are taken into account, retail sales in constant dollars rose 1% in January.