Statistics Canada reports retail sales down 1.4 per cent in March, but core sales up 0.3 per cent

OTTAWA –

Canadian retail gross sales fell 1.4 per cent to $65.3 billion in March as gross sales at fuel stations and new automotive sellers declined, Statistics Canada mentioned Friday.

However, the company mentioned its early estimate for April pointed to a achieve of 0.2 per cent for that month, although it cautioned the determine could be revised.

“While March’s decline in retail sales was no worse than anticipated, and was driven largely by volatility in auto and gasoline sales, slight cracks are starting to show within Canadian consumer spending,” CIBC senior economist Andrew Grantham wrote in a report.

“Although spending on services is likely to have held up better, a softening trend in retail sales volumes towards the end of Q1 is a sign that perhaps the Bank of Canada simply needs more patience, rather than more interest rate hikes, in its quest to bring inflation back down to target.”

The Bank of Canada stored its key rate of interest goal on maintain at 4.5 per cent final month, however the central financial institution’s governing council did contemplate elevating it of their deliberations earlier than deciding to face pat.

Governor Tiff Macklem has mentioned the financial institution is ready to lift charges additional if indicators confirmed inflation is prone to get caught above its two per cent goal.

The annual inflation charge for April was 4.4 per cent, up from 4.3 per cent in March and the primary improve because it peaked final June at 8.1 per cent.

Statistics Canada mentioned Friday retail gross sales rose in 5 of the 9 subsectors it tracks as core retail gross sales — which exclude gasoline stations and gas distributors and motorized vehicle and elements sellers — rose 0.3 per cent in March.

Sales at motorized vehicle and elements sellers dropped 4.4 per cent in March, their first decline in eight months as gross sales at new automotive sellers fell 4.8 per cent.

Sales at gasoline stations and gas distributors had been down 3.9 per cent.

Meanwhile, gross sales at constructing materials and backyard tools and provides sellers rose 1.6 per cent and gross sales at sporting items, passion, musical instrument, guide, and miscellaneous retailers gained 1.6 per cent.

In quantity phrases, Statistics Canada says retail gross sales fell 1.0 per cent in March.

This report by The Canadian Press was first printed May 19, 2023.