Canada retail sales rose a stronger-than-expected 0.9% mom in March to CAD 72.7B, beating expectations of a 0.5% increase. The headline gain was driven largely by gasoline stations and fuel vendors, where sales surged 12.4% during the month as higher oil prices linked to the Middle East conflict pushed fuel costs sharply higher.
However, underlying consumer demand remained considerably softer beneath the headline strength. Core retail sales, which exclude gasoline stations, fuel vendors, and motor vehicle dealers, slipped -0.1% mom in March. In volume terms, overall retail sales actually declined -0.7%, while sales volumes at gasoline stations fell -1.9%, indicating much of the nominal increase reflected higher prices rather than stronger real consumption activity.
Even so, broader trend data remained relatively stable. Retail sales increased 2.1% in Q1, marking a seventh consecutive quarterly gain, while volumes rose 1.2% over the quarter. Statistics Canada’s advance estimate also suggested another 0.6% increase in April retail sales.
| Indicator | Latest |
|---|---|
| Retail Sales (mom) | 0.9% |
| Core Retail Sales (mom) | -0.1% |
| Retail Sales Volume (mom) | -0.7% |
| Gasoline Station Sales (mom) | 12.4% |
| Gasoline Sales Volume (mom) | -1.9% |
| Q1 Retail Sales Growth | 2.1% |
| Q1 Retail Sales Volume Growth | 1.2% |
| Advance April Retail Sales Estimate | 0.6% |
