Ottawa - Statistics Canada says retail sales rose by 3.2 percent to reach $58.9 billion in January, supported by an increase in sales at new car dealers at the beginning of the year.

However, the agency says its preliminary estimates for February indicate that retail sales fell by 0.5 percent for that month, although revisions to these numbers are possible.

The increase in sales in January came despite public health restrictions in several parts of the country to deal with the Omicron surge in COVID-19 cases.

Sales in the automotive and parts trade led the way up, jumping by 5.3 percent, supported by a 5.5 percent increase in new car sales and a 9.7 percent increase in used car sales.

Excluding automotive and parts trade and gas stations, retail sales rose by 2.9 percent.

In terms of volume, total retail sales rose by 2.9 percent in January.