Canada’s retail sales rose 1.1% mom to CAD 70.7B in January, falling short of expectations for a stronger 1.4% increase. The gain was nevertheless broad-based, with six of nine subsectors posting growth, led by motor vehicle and parts dealers.
Core retail sales, which strip out volatile components such as gasoline and autos, rose a solid 0.9% on the month. The increase was driven primarily by general merchandise retailers, where sales jumped 3.0%, marking a fourth consecutive monthly gain. This points to underlying strength in discretionary spending.
Looking ahead, Statistics Canada’s advance estimate indicates that retail sales rose another 0.9% mom in February, suggesting steady momentum into Q1.
