OTTAWA - Retail sales increased for a third straight month in February, rising 0.5 per cent in current dollars to $36 billion.

Higher sales at new car dealers were the main contributor to the gain.

Statistics Canada reports sales in volume terms increased 0.6 per cent.

The agency says sales increased in seven of 11 retail subsectors.

The largest contributor to the overall increase was a 2.9 per cent gain at motor vehicle and parts dealers, where sales rose for the first time since October.

The clothing and clothing accessories stores subsector recorded a 4.3 per cent rise, their third straight increase.

Sales in the food and beverage stores subsector rose 0.5 per cent, led by a 3.7 per cent increase at beer, wine and liquor stores during the Vancouver Winter Olympic Games.

Sales at gasoline stations were up 0.5 per cent, their 10th straight gain.

Retail sales were dampened by declines at building material and garden equipment and supplies dealers (down 7.6 per cent) and furniture and home furnishing stores (down 3.5).

Retail sales rose in nine provinces in February.