It might only be by a modest 1%, but the fact that retail sales were up for the seventh time in the past nine months this September is a good sign that the economy will only get better from here.

According to Statistics Canada, retail sales reached $34.9 billion in dollars and 1.2% in volume.
Surprisingly, the automotive sector posted a 1% gain in September, the highest being in recreational motor vehicles and parts (2%). New car sales were up 0.6%, and gas stations report a 1.1% increase.

Auto sales notwithstanding, retail sales posted the largest gain in September since January 2009. Food and beverages showed healthy growth at 1.3%, mainly through the supermarket channel, which was up 1.5%. But other retail areas are showing signs of rejuvenation as well: sales rose 1.9% at general merchandise stores, and sporting goods, hobby, music, and book stores were up 1.9%, representing the largest increase in this sector since March 2008.

Good news for this industry: sales in furniture, home furnishings, and electronics were up 1.2% as well; the largest increase since July 2008. Furniture showed the most significant gain at 3.2%.
Posting declines was the outdoor home supplies stores, which were down 0.2%, and clothing accessories (down 0.1%).

Provincially, Quebec showed the largest increase at 2.2%; followed by the Atlantic provinces (4.1%), and B.C. (1.8%). Saskatchewan and Alberta unfortunately did not show gains in sales, falling 0.9% in the former and remaining flat in the latter.

But the economy still has a long way to go. Comparing sales to September 2008, we are down 3.3%.

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