(RTTNews) - Canadian retail sales rose more than expected in August, but remained lower compared to the same period in 2008, according to Statistics Canada.

The agency reported Thursday morning that retail sales in current dollars rose 0.8% in August to $34.5 billion, offsetting a revised 0.5% decline in July. However, excluding rising sales at gas stations and new car dealers, sales were flat.

Economists were looking for retail sales to inch higher by 0.1%

Retail sales have generally been rising since the beginning of 2009, following a sharp decline at the end of 2008, Stats Canada noted. On a year-over-year basis, sales in August were 3.7% lower than in August 2008.

The automotive sector saw the largest gain in retail sales in August, rising 2.4%. Sales at gasoline stations increased 3.9% and were the largest contributor to the gain.

Although gasoline stations comprise around 11% of retail sales, they have accounted for about 29% of the month-to-month movement in retail sales since August 2008.

Sales rose 1.2% in Ontario, making the most populous province the largest contributor to the national increase.

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