Canada December Retail Sales - Strong end to 2024
Canada’s December retail sales with a 2.5% rise are significantly stronger than expected, and well above a 1.6% estimate made with November data, with a sales tax holiday which ran from mid-December through mid-February enticing consumers to spend. The preliminary estimate for January is for a modest correction lower, with a decline of 0.4%.
The details of the monthly gain are strong, with sales also up by 2.5% in real terms as did sales ex autos and gasoline. Sales increased by 2.7% ex autos. In Q4 sales increased by 2.4% (not annualized) while in real terms sales rose by 1.8%.
With consumer spending also having seen a solid Q3, BoC easing appears to be having some impact, and the latest data is supportive fir Q4 GDP data due on February 28. However, uncertainty over US tariffs leaves it unclear whether the momentum will continue into 2025.
