Canada March Retail Sales rise, with autos strong and gasoline weak, April seen firmer
Canada’s 0.8% rise in March retail sales is slightly stronger than a 0.7% preliminary estimate made with February’s release, but the rise is more than fully explained by what was the first rise in three months for autos, possibly related to concerns about upcoming tariffs. Ex auto sales fell by 0.7%, though sales ex autos and gasoline were up 0.2%.
While the March breakdown is not impressive, the preliminary estimate for April is surprisingly strong, with a rise of 0.5%, contrasting expectations of economic weakness due to US tariffs.
Gasoline sales fell by 6.5% with a 2.6% fall in volume terms. Overall sales increased by 0.9% in volume terms. In Q1 retail sales rise by 1.2% but by only 0.2% (not annualized) in volume terms, meaning a subdued quarter to follow strong gains in Q3 and Q4.
March data shows gains in building materials and clothing, but weakness in general merchandise.
