Statistics Canada, yesterday, reported an increase of 1.9 per cent in Canadian retail sales, in January, giving the economists "a glimmer of hope".

"Amidst the sea of bad economic news ... Canadian consumers are still standing," said Krishen Rangasamy of Canadian Imperial Bank of Commerce.

However, he still doubted if January's spending levels, which resulted in $33.7-billion in sales, could be sustained as the major chunk of the month-over-month gain in January was driven by a 3.8-per-cent increase in the automotive products sector which had reportedly dropped off again by February.

Toronto-Dominion Bank economist Charmaine Buskas was of opinion that consumers had evidently made the most of the deep discounting that retailers extended past the holiday season, "even as the underlying macroeconomic fundamentals continue to lose ground."

Though the January figures look promising, at least apparently, the monthly gain should be viewed in the context of the "absolutely abysmal December result," she said.