By Promit Mukherjee
OTTAWA (Reuters) -Canada's retail sales rebounded in August as consumers spent more for new cars, at supermarkets and for clothing among other things, data from Canada's national statistics agency showed on Thursday.
Retail sales grew by 1% to C$70.40 billion ($50.20 billion) in August from an upwardly revised drop of 0.7% in July, Statistics Canada said.
An advance estimate for September showed that sales are likely to fall by 0.7%.
Analysts polled by Reuters had forecast retail
sales growth of 1% in August and 1.3% growth excluding automotive and parts sales.
Excluding the automotive category, which accounts for up to 28% of the total retail sales, sales grew by 0.7%, StatsCan data showed.
In volume terms, the monthly retail sales also clocked a similar 1% gain, it said.
Retail sales, which include domestic sales of cars, furniture, food, gasoline and many other items, are considered an early indicator of gross domestic product growth and contribute around 40% to total consumer spending.
Analysts and economists track the retail sales number closely to gauge the health of the economy.
The biggest boost to retail sales in August came from the automotive sub-sector, which includes sales at new and used car dealers, automotive parts and accessories and tires. The category posted robust growth of 1.8% led by sales of new cars, which jumped by 2.3%.
Another sub-sector which posted solid growth was clothing and accessories, clocking a 3.2% jump. This sector accounts for almost 6% of total retail sales.
Food and beverages, the second biggest contributor to retail sales, was up 0.3% led by purchases at supermarkets and grocery retailers.
Sales at fuel stations and sales of building materials registered a drop.
($1 = 1.4024 Canadian dollars)
(Editing by Joe Bavier)
