June retail sales rose in Canada but the underlying trend remained weak, data showed on Monday, adding to evidence that the Bank of Canada will keep interest rates on hold for the foreseeable future.
Overall retail sales increased by 0.4% in June, above analyst estimates of a 0.1% gain. Sales of autos led the advance while gasoline prices provided further support.
Excluding autos, retail sales were essentially flat in June, rising by a meagre 0.1%.
Core retail sales, which exclude both autos and gasoline, climbed by 0.4% last month, above analyst expectations of a 0.2% increase.
Economists said the increase in auto sales was driven in part by a pick-up in light truck sales, which could be a sign that businesses are beginning to invest more.
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