OTTAWA - Retail sales rose for a third consecutive month in July to $43.3 billion as Canadians opened their wallets for a new ride and new clothes.

The 0.5 per cent increase from June's level was helped by rising sales of new motor vehicles - mostly trucks - as well as clothing and clothing accessories, Statistics Canada said Wednesday.

It said six of 11 retail subsectors posted gains. Excluding motor vehicle and parts dealers, retail sales were unchanged for the month.

According to Thomson Reuters, economists had expected a gain of 0.5 per cent for the month overall and 0.4 per cent excluding autos.

“We're modestly optimistic that consumer spending should see a pick-up in the next few reports, in part because families will have more time to spend their tax rebates,” CIBC economist Nick Exarhos said referring to the Universal Child Care Benefit.

The motor vehicle and parts dealers subsector, gained 2.0 per cent in July, and posted the largest gain in dollar terms. Sales at new car dealers gained 2.7 per cent. That was partly offset by flat levels at parts dealers and declines for used car dealers and other types of motor vehicles.

Clothing and clothing accessories stores gained 2.5 per cent - the first increase in three months.

The Canadian economy struggled through the first half of the year as it contracted in the first two quarters of 2015. However, most economists expect the economy to gain strength in the second half.

To help offset the drag caused by the sharp drop in oil prices, the Bank of Canada has cut its key interest rate by a quarter of a percentage point twice this year and it now sits at 0.5 per cent.

The central bank expects the Canadian economy to grow at an annual pace of 1.5 per cent in the third quarter before accelerating to an annual pace of 2.5 per cent in the final three months of the year.

BMO senior economist Robert Kavcic said the “decent” retail sales report suggests the economy continued to rebound in July.

Retail sales rose 0.2 per cent in volume terms.

“When combined with a strong result in manufacturing, real GDP looks like it should post a 0.2 per cent gain in the month,” Kavcic said.

“That would mark a second straight month of growth after the negative early-year run.”

Regionally, retail sales were up in six provinces in July as Ontario gained 1.0 per cent for the month. Alberta increased 0.5 per cent, while Manitoba advanced 1.8 per cent and Quebec added 0.2 per cent.

British Columbia lost 0.4 per cent, while Saskatchewan slipped 0.3 per cent lower.