Retail sales rose a full per cent to $34.9 billion in September, the seventh increase in nine months.

Strong retail sales in September have some experts saying the Christmas buying season could be unexpectedly busy. (Havard Gould/CBC)

The increases were widespread, with six of eight sectors showing gains, Statistics Canada reported Monday.

In volume terms, retail sales increased 1.2 per cent.

Following a sharp decline at the end of 2008, retail sales have been rising since the beginning of 2009. But September sales were still 3.3 per cent lower than in September 2008.

"Whether it’s housing, auto sales or these retail sales figures, there is mounting evidence that the domestic side of Canada's economy is in full recovery mode," BMO economist Douglas Porter commented.

The automotive sector was up one per cent from August, with all components recording higher sales. A two per cent gain in used and recreational motor vehicles and parts was a particular source of strength, the data agency noted.

Excluding the automotive sector, retail sales rose 1.1 per cent in September, the largest gain since January.

The main contributor to this increase was the food-and-beverage sector, where store sales rose 1.3 per cent. The largest increase was at general merchandise stores, where sales rose 1.9 per cent.

Retail sales rose in eight provinces in September, Statistics Canada says. (Kathy Willens/Associated Press)

Sales by miscellaneous retailers rose 1.7 per cent after four flat months. Sales at home furnishings and electronics stores increased 1.2 per cent, this segment's biggest increase since July 2008.

One of the rare weak spots in the month was the building and home-supply segment, down 0.2 per cent, Porter said. The sector had been relatively healthy due to Ottawa's home renovation tax credit. Clothing and accessories stores were also down by 0.1 per cent.

Regionally, sales rose in eight provinces in September. Quebec, with a 2.2 per cent increase, was the largest contributor. It was the province's fourth rise in five months.

The two provinces where retail sales did not increase were Saskatchewan and Alberta. Sales fell 0.9 per cent in Saskatchewan in September, partially offsetting an increase in August. Sales were flat in Alberta, following two months of declines.

The report is "encouraging," RBC economist Paul Ferley said, adding that it augurs well for September GDP to rise around 0.4 per cent, following a disappointing 0.1 per cent drop in August and flat growth in July.