Retail sales in Canada jumped 1.9 per cent in January to $33.7 billion after falling 5.2 per cent in December, Statistics Canada reports.
Sales were up in five of the eight retail sectors, with the automotive sector posting the largest increase of 3.8 per cent.
The boost to the auto industry was mainly due to a 6.4 per cent rise in the value of sales at new car dealers, following a 15.1 per cent decline in December.
Sales at gasoline stations also rose 2.6 per cent. Still, used and recreational motor vehicle and parts dealers posted a 1.8 per cent decline in January.
Since peaking in September 2008, the monthly level of retail sales in current dollars has fallen by about 7 per cent.
December's 5.2 per cent drop was the largest monthly decline in more than 15 years. The main contributors to the declines were lower new motor vehicle sales and falling gas prices.
In January, Statistics Canada says food and beverage stores reported sales rise 2.1 per cent while pharmacies and personal care stores saw a 2 per cent increase.
Meanwhile, sales at building and home supplies stores fell 1.4 per cent while sales of furniture, home furnishings and electronics dropped 0.7 per cent.
Across Canada, sales rose in all provinces in January with the exception of Manitoba, which saw a 0.6 per cent decline.
BNN's Michael Kane said economists are questioning whether the increase is sustainable.
"Economists are saying probably not because the fundamental problems in our society - that of job loss, slowing construction, slowing industry - they have not been solved yet," he said.
New motor vehicle sales
Statistics Canada also released its new motor vehicle sales report Friday, which showed an increase of 5.5 per cent to 119,231 units in January.
Since November 2008, monthly sales have averaged close to 120,000 units. In comparison, the average over the last three years was about 140,000 units monthly.
Sales of new trucks -- which includes minivans, sport-utility vehicles, light and heavy trucks, vans and buses -- were up 8.6 per cent to 58,784 units.
Sales of passenger cars increased 2.7 per cent to 60,447 units in January. The increase was led by sales of North American-built passenger cars, which jumped 3.5 per cent after dropping around 12 per cent in November and December.
Provincially, the number of new motor vehicles sold was up in eight provinces.
Lower sales were posted in Quebec and Nova Scotia. According to the report, sales in Quebec have been falling gradually since peaking in early 2008.
