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UPDATE 1-Canada retail sales rise in September, boosted by autos

Published 2016-11-22, 08:46 a/m
© Reuters.  UPDATE 1-Canada retail sales rise in September, boosted by autos

(Adds details from report)

OTTAWA, Nov 22 (Reuters) - Canadian retail sales picked up in September as auto purchases climbed for the first time in three months on demand for new cars, data from Statistics Canada showed on Tuesday.

Retail sales rose 0.6 percent, in line with economists' expectations, but would have been flat without the increased purchases of cars and parts. August's figures were revised slightly higher to a gain of 0.1 percent from an initially reported decline of 0.1 percent.

Sales at motor vehicle and parts dealers led the way in September, rising 2.4 percent. Besides the increase in new car sales, Canadians paid more for gasoline.

Economists had been watching September's retail activity to see if Canadians were starting to spend the child bonuses the government began mailing out in July as part of its effort to bolster the economy.

Sales at clothing stores edged up just 0.2 percent, while purchases of electronics and appliances rose 0.3 percent. General merchandise stores fared better, with sales rising 0.4 percent, recovering from the previous month's decline.

A new measure showed e-commerce accounted for 2.1 percent of Canada's total sales on an unadjusted basis, up from 2.0 percent in August.

The figure measures internet sales at retailers that have brick and mortar locations and at those that are only online. In the first nine months of the year, the proportion of online purchases ranged from 2.3 percent in January to 1.9 percent in July, Statistics Canada said.

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