(Bloomberg) -- Rising gasoline prices gave a boost toCanadian retail sales in July, bringing the sector back togrowth.
Retailers saw receipts increase by 0.3 percent, after a 0.1percent decline in June, Statistics Canada said Friday inOttawa. The gain was in line with economist expectations. Salesat gasoline stations jumped 1.9 percent, helping offset a dropin car sales that month.
The gain in July follows a relatively robust pick-up in consumerspending in the second quarter. That along with strongerbusiness investment and exports has led to a rebound in economicactivity and is fueling expectations the Bank of Canada willkeep raising interest rates in coming months.
The increase in July was driven by higher prices rather thanvolumes, which were down 0.1 percent. Sales were up in eight ofthe 11 sectors tracked by Statistics Canada.
Car and auto parts dealers had an off month, with sales down 1.4percent. Excluding the sector, retail sales were up 0.9 percent.
©2018 Bloomberg L.P.
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