A 3.4 per cent rise in purchases at new car dealers helped push Canadian retail sales up in May, Statistics Canada says. (Paul Sakuma/Associated Press)

An increase in new car purchases helped push up retail sales across Canada in May.

Retail sales rose 1.2 per cent in May to $34 billion, Statistics Canada said Wednesday, offsetting a modest decline in April.

Sales were up in seven of the eight sectors monitored by the data agency, led by a 2.4 per cent increase in the automotive sector.

By volume, retail sales were up 0.7 per cent overall. The agency says retail sales were up in nine provinces in May.

Provincially, the highest increase was in New Brunswick, at 2.5 per cent, while Newfoundland and Labrador, with a 1.0 per cent gain, is the only province where retail sales have risen every month this year. Ontario's 1.5 per cent gain was the largest contributor to the overall gain.

The only province to post a retail sales decrease was Prince Edward Island, where they fell 0.7 per cent. That province had seen increases of more than one per cent for the previous two months.

Car sales drive gains

Nationally, the agency says a 3.4 per cent rise in sales at new car dealers was the main contributor to May's increase in the automotive sector. The rise came largely on the strength of truck sales.

Sales in the building and outdoor home-supplies stores sector increased by one per cent, double the rate of the previous month, while home centre and hardware store sales were up 1.1 per cent.

Sales at food and beverage stores rose 0.7 per cent, while furniture, home furnishings and electronics stores were up 0.5 per cent, their first increase since last July. Within that sector, sales at home furnishings stores led the increase in May with a 2.5 per cent gain.

The exception to rising sales was in clothing and accessories stores, where sales were essentially unchanged from April. A slight 0.2 per cent sales increase at clothing stores was offset by a 0.7 per cent decline in shoe, accessory and jewelry stores.

With files from The Canadian Press