Updated: Mon Nov. 23 2009 6:53:16 PM

CTV.ca News Staff

There's yet another sign that the economy is on the upswing, with Canadian retail sales rising again in September.

It is the seventh time sales have increased in the last nine months.

New numbers from Statistics Canada show sales jumped to $34.9 billion, which is a one per cent increase over August.

The automotive industry is one of the factors that fueled the gains. It showed one per cent higher sales in September, due to increased interest in recreational vehicles and auto parts. Sales at new car dealers and gas stations also went up 0.6 per cent and 1.1 per cent respectively.

Increases in the food and beverage industry, furniture, electronics, and general merchandise also contributed, and for the first time since March 2008, sales of sporting goods, music and books went up.

Retail sales have been rising since the beginning of 2009, following a sharp decline at the end of 2008. They still haven't fully recovered to their pre-recession state, with this September's numbers being 3.3 per cent lower than September 2008. But BNN's Michael Kane told CTV News Channel that the numbers are still a good sign as we enter the holiday season.

"We had such a crummy holiday sales period last year, that's when the Canadian economy really hit the skids, it was November, December, January, so we're going to get nice comparative numbers year over year," he said.

He said today's numbers paint "quite a bright picture, and that is also helping to lift the loonie somewhat."

Retail sales rose in eight provinces in September. Quebec, with a 2.2 per cent increase, was the largest contributor with its fourth rise in the last five months.

But the picture wasn't so great in two prairie provinces. Sales fell 0.9 per cent in Saskatchewan in September, partially offsetting the increase in August. In Alberta sales were flat, following two months of declines.

-With files from The Canadian Press

Comments are now closed for this story

*ahem*
I think that the surge is due to the selling of Saskatchewan Roughrider hats and jerseys!

Fiend, AB
This is probably caused by an increase in available credit more than anything. I truly do hope that we are turning the corner out of this ugly recession but I am still waiting for the other shoe to drop on increased government debt and the cuts/tax increases that will inevitably come with it.

Maz in AB
People in Alberta need confidence in full employment before they'll part with their money at this point.

Gord. Robson, Nova Scotia
Always good to see an increase in Retail sales especially at this time of year which is when you really need the sales. Another sign that things are getting better and hopefully more good news is on the way. I am thankfull to be living in Canada!

LEAF FAN
Most likely due to the amount of Leaf fans jumping ship and having to buy new jerseys....