By Ketki Saxena
Investing.com -- Canadian retail sales increased 1.1 percent to $63.1 billion in June, boosted by higher sales at gasoline stations and motor vehicle and parts dealers, Statistics Canada said Friday.
However, retail sales in volume terms gained 0.2 percent in that period, suggesting, that much of the headline strength was due to higher prices as noted by Bank of Montreal (TSX:BMO) economist Shelly Kaushik.
“Still, it looks like retail sales will add to growth in the second quarter. However, the flash estimate for July points to a weaker start to Q3,” Kaushik wrote in a report.
Statistics Canada's preliminary flash estimates for July suggested retail sales fell 2.0 percent.
June’s numbers were most boosted by sales at gasoline stations, which rose 3.9 percent.
Sales at motor vehicle and parts dealers gained 1.8 percent in June.
General merchandise stores gained 1.1 percent for June, and clothing and clothing accessories stores rose 1.8 percent.
Sales at food and beverage stores fell 1.1 percent.