Statistics Canada announced on Friday that the Canadian retail sales increased 4.2 percent m-o-m to CAD56.16 billion in June, following an unrevised 2.1 percent m-o-m drop in May. This was the first gain in retail sales in the last three months.

Economists had forecast a 4.4 percent m-o-m decrease for June.

According to the report, sales went up in 8 of 11 subsectors in June, accounting for 69.5 percent of total retail sales, led by lower sales at clothing and clothing accessories stores (+49.1 percent m-o-m). 

Core retail sales, which excludes gasoline stations and motor vehicle and parts dealers, rose 4.6 percent m-o-m in June after dropping 2.4 percent m-o-m in the previous month.

In y-o-y terms, Canadian retail sales grew 6.2 percent in June, following an unrevised 24.6 percent jump in May.