Canada’s retail sales increase more than forecast in February

Statistics Canada reported on Tuesday that the Canadian retail sales rose 0.3 percent m-o-m at CAD52.25 billion in February, following a revised 0.6 percent m-o-m advance in January (originally a 0.4 percent m-o-m advance). That marked the first time retail sales grew for four months in a row since October 2018.

Economists had forecast a 0.2 percent m-o-m increase for February.

According to the report, the February gain was primarily attributable to higher sales at motor vehicle and parts dealers (+1.1 percent m-o-m), general merchandise stores (+1.4 percent m-o-m) and gasoline stations (+0.6 percent m-o-m). These increases, however, were partially offset by lower sales at food and beverage stores (-1.0 percent m-o-m).

Excluding motor vehicle and parts dealers, retail sales were unchanged m-o-m in February compared to a revised 0.1 percent m-o-m increase in January (originally a 0.1 percent m-o-m drop) and economists' forecast for a 0.3 percent m-o-m advance. Excluding motor vehicle and parts dealers and gasoline stations, retail sales edged down 0.1 percent m-o-m in February.

In y-o-y terms, Canadian retail sales climbed 3.0 percent in February, following a revised 3.7 percent surge in January (originally a 3.4 percent jump).