Retail sales rose greater than expected in June, by one per cent, Statistics Canada reported Monday, a sign that the worst of the recession may be over as Canadians appear willing to start spending again.

According to the report, retail sales in dollars rose to $34.4 billion, largely on increases in the purchase of gasoline and car parts.

The report said sales were up in nearly all retail sectors, including:

• the automotive sector, by 2.1 per cent
• food and beverage stores, by 1.3 per cent
• pharmacies and personal care stores, by 0.8 per cent
• home furnishings and electronic stores, by 0.6 per cent
• clothing and accessories stores, by 0.1 per cent

Sales at gas stations were up a whopping 4.7 per cent, an increase largely attributed to higher gasoline prices.

The only two sectors that posted declines in sales were general merchandise stores and building and outdoor home supply stores, which saw their sales decrease by 0.6 per cent, largely due to poor spring weather.

The sales figures were better than expected, according to a Bloomberg News survey, which found that economists predicted a modest 0.2 per cent June increase.

Retail sales have risen five of the last six months, after large drops at the end of last year, the agency reported.

BNN's Michael Kane said consecutive months of sales increases are an indicator that the economy is on the rebound.

"Once again, it showed that the Canadian consumer is willing to spend," Kane said Monday morning on CTV News Channel. "And although this isn't a huge gain, what it does is it says that even though there were recessionary times in the month of June, the worst indeed must be over."

The rising sales figures are another indicator that Canada is on its way to emerging from a recession that has gripped worldwide economies.

Last month, the Bank of Canada announced that Canada's economy will grow by 1.3 per cent during the summer months, after three straight months of sharp contraction.

The growing confidence in the Canadian economy is also having an impact on the Loonie, Kane reported, which was trading above 93 cents early Monday morning.

Gains made in nine provinces

The jump in sales was seen across Canada, with gains posted in nine provinces.

The highest increases were posted in the Prairies, where sales were up 2.8 per cent in Manitoba and 2.3 per cent in Saskatchewan.

Sales were up 1.8 per cent in Quebec and Nova Scotia, and up one per cent in Newfoundland and Labrador, while sales remained unchanged in Ontario.

The only province to experience a decrease in sales was New Brunswick, by 0.2 per cent.