The Canadian retail sector is off to a bright start in 2012, with a Statistics Canada report released on Thursday noting sales were up during the first month of the year.

While January sales didn't quite meet the expectations of economists, they were up 0.5 percent to C$38.9 billion. Many industry experts projected an overall sales gain of 1.8 percent for the first month of 2012, a number which the sector couldn't meet.

"Canadian consumers are expected to slow down spending habits in the months and years to come, according to economists, as they manage their record-high household debt loads," Nasdaq notes. "Consumer spending helped Canada's economy recover faster than most of its Group of Seven peers following the financial crisis, powered by record-low borrowing rates."

Categories doing particularly well include general merchandise stores, retail department chains and apparel.

The retail sector has similarly been improving in the United States, with many experts anticipating a boom in sales around the Easter holiday.