Ottawa (Jul 23, 2008)

Retail sales rose 0.4 per cent in May to $35.8 billion, the seventh increase in eight months.

The advance was primarily due to increased sales at gas stations, largely owing to an 8.8 per cent hike in gas prices in May over April.

Statistics Canada reports retail sales in constant dollars rose by only 0.1 per cent if the effects of price changes are removed.

Retail sales in current dollars were up in five of eight sectors in May.

Sales in the automotive sector posted a strong 1.1 per cent increase in May, the sixth rise in eight months. Sales were up in all three components of the sector, with gas stations posting the largest sales increase, at 2.4 per cent.

Sales in the building and outdoor home-supplies stores sector rose 0.7 per cent, the second increase in eight months.

Among the three sectors where sales did not increase, the largest drop was in clothing and accessories stores, down 0.7 per cent.