British Columbia's retail economy grew 0.6% in August, according to a Central 1 Credit Union economic report released October 25.
The increase – the third in four months – suggests the "embattled sector may be in the early stages of a recovery following a difficult two-year period," reads the report.
The gains were spread amongst numerous retail sectors, but were "particularly strong" in housing related areas such as furniture and home furnishings, building materials and electronics.
The strength of the housing-related sector, adds the report, offset sluggish sales in auto-related areas.
Year-to-date sales at B.C. brick-and-mortar retail outlets grew 1%, well below the national average of 2.2%.
"The weak retail environment will persist," reads the report. "Consumer demand remains sluggish due to weak employment growth and high debt loads. Additionally, retailers continue to feel the pinch of cross-border and online shopping."
Dollar-sales growth for 2013 is expected to remain at 1%, below last year's 1.9 increase. Growth in 2014, however, is forecasted to hit 3.5% on higher inflation and labour market expansions.
