UPDATE 1-Canada retail sales unexpectedly jump 0.7 pct on autos

* Markets had only expected a 0.1 percent rise

* July increase fueled by motor vehicle sales

* July retail sales are second highest on record

OTTAWA, Sept 25 (Reuters) - Canadian retail sales in July unexpectedly jumped by 0.7 percent from June to a near record C$38.99 billion ($39.79 billion), in part due to higher sales of new cars, Statistics Canada data indicated on Tuesday.

The leap was far greater than the modest 0.1 percent advance forecast by market analysts and contrasts with other recent figures showing the Canadian economy is slowing. The July figure was the second highest on record after the C$39.00 billion posted in March.

Statscan revised June's decline to 0.3 percent from an initial 0.4 percent drop.

Gains were reported in eight of 11 subsectors, representing 72 percent of total retail trade. In volume terms, retail sales rose by 0.6 percent.

Sales at new car dealers rose by 1.7 percent, the first notable increase since January 2012, while gasoline stations reported a 0.7 percent sales gain after two consecutive monthly declines.

Receipts at general merchandise stores grew by 1.5 percent. Sales at building material and garden equipment and supplies dealers were up by 1.9 percent after dropping in April, May and June.