Market Outlook: Canada retail sales rise 0.7% missing forecasts
Canada's retail sales rose 0.7% in February to $72.1 billion, below expectations of a 0.9% gain. Consumer spending remains resilient, supported by improved incomes and strong investment returns, but may be weighed down by rising gasoline prices and weakening purchasing power.
Canada's retail sales increased 0.7% in February to $72.1 billion, missing forecasts of a 0.9% gain. Core sales, excluding autos, rose 0.5%, indicating steady underlying demand. Vehicle sales drove the growth, offsetting broader uncertainty. Charles St-Arnaud, chief economist at Servus, noted that consumer spending remains solid but warned that rising gasoline prices and weakening purchasing power could impact consumer activity. Higher gasoline prices may lift nominal sales in March but could mask weaker real consumption. Sustained energy cost pressures may reduce purchasing power and lead to softer retail activity in coming months.
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