Canada’s retail sales increase more than expected in February

Statistics Canada announced on Wednesday that the Canadian retail sales jumped 4.8 percent m-o-m to CAD55.08 billion in February, following an unrevised 1.1 percent m-o-m drop in January. This marked the first monthly increase retail sales since November 2020.

Economists had forecast a 4.0 percent m-o-m gain for February.

According to the report, sales decreased in 9 of 11 subsectors in February, led by higher sales at motor-vehicle and parts dealers (+5.0 percent m-o-m) and gasoline stations (+12.3 percent m-o-m, the largest increase since June 2020). Excluding motor vehicle and parts dealers, retail sales also rose 4.8 percent m-o-m in February compared to a 1.2 percent m-o-m fall in January and economists’ forecast for a 3.7 percent m-o-m climb. Meanwhile, core retail sales, which excludes gasoline stations and motor vehicle and parts dealers, grew 3.8 percent m-o-m in February, driven by higher sales at general merchandise stores (+6.1 percent m-o-m) and clothing and clothing accessories stores (+23.7 percent m-o-m, 23.7%, the first gain since September 2020).

In y-o-y terms, Canadian retail sales climbed 6.0 percent in February, following an unrevised 1.3 percent advance in January.