Statistics Canada says retail sales up 0.4% at $66.9 billion in September

Canadian retail sales rose 0.4% to $66.9 billion in September from a month earlier, boosted by gains at supermarkets and other grocery stores, Statistics Canada said Friday.

The agency also said that its advance estimate for retail sales in October suggests sales increased 0.7% for that month, though it cautioned the figure would be revised.

"Canadian consumers seemed to have found their footing in the second half of the year, benefiting from cooling inflation and falling interest rates," BMO economist Shelly Kaushik wrote in a report.

The Bank of Canada has cut its policy interest rate four times this year so far to bring it down to 3.75%. The cuts have come as the annual pace of inflation has eased 2% in October. 

Statistics Canada said the sales in September at food and beverage retailers increased 3% for the month.

The move higher for the subsector came as supermarkets and other grocery retailers, except convenience retailers, rose 3.3% and sales at beer, wine and liquor retailers added 4.4%.

The building material and garden equipment and supplies dealers subsector also gained 3% in September. 

Meanwhile, sales at gasoline stations and fuel vendors fell 2.3%, while sales in volume terms increased 3.2%.

Motor vehicle and parts dealers saw sales drop 0.7% in September.

Core retail sales, which exclude gasoline stations and fuel vendors and motor vehicle and parts dealers, gained 1.4% in September.

In volume terms, retail sales rose 0.8% in September.