Canada January Retail Sales - Slipping from strong December
Canada’s January retail sales with a 0.6% decline are slightly weaker than an advance estimate of -0.4% but need to be seen alongside a strong 2.6% increase in December. The advance estimate for February is for another decline, by 0.4%. Tariff concerns may be starting to weigh on Canadian consumers.
January retail sales were down by a steeper 1.1% in real terms but increased by 0.2% ex autos. Excluding autos and gasoline, sales fell by 0.2% a modest correction after a 2.7% December increase.
Canada saw a sales tax holiday from mid-December through mid-February. It appears that consumers took advantage of this in December but the boost had already faded in January. Trend still looks quite firm but that will be difficult to sustain in the months ahead.
