OTTAWA — Canadian retail sales slowed in March as people shopped less at retailers selling furniture, household goods, electrical goods and appliances, Statistics Canada said Friday.
The agency said retail sales fell 0.2% to $66.4 billion in March, but initial estimates for April are calling for a 0.7% increase.
CIBC senior economist Catherine Judge said Canadian retail sales finished the first quarter on a weak note.
“The weakening momentum through the quarter reflects consumers becoming more cautious amid rising interest rates at mortgage renewal time and is also consistent with the Bank of Canada beginning to cut interest rates in June,” Judge wrote in the report.
“April sales forecasts had suggested a 0.7% increase, partly reflecting higher gasoline prices, but actual sales are now expected to grow at about half that pace, effectively only slightly reversing March's decline.”
The Bank of Canada's next interest rate decision is scheduled for June 5. Governor Tiff Macklem said it's “possible” the central bank will cut interest rates in June, but the decision will be based on economic data.
Statistics Canada said retail sales fell in seven of nine subsectors in March.
Sales at furniture, household goods, electrical and electronics retailers fell 1.6%, while sales at clothing, fashion accessories, shoes, jewelry, luggage and leather goods retailers also fell 1.6%.
Retail sales at auto and parts dealers rose 1% in March, helped by a 1.1% increase at new car dealers.
Core retail sales, which exclude sales at gas stations, fuel dealers and auto and parts dealers, fell 0.6%.
The only core retailers to report sales increases were sellers of building materials and garden equipment and supplies, which increased 1.3 percent.
In terms of volume, overall retail sales fell 0.4% in March.
This report by The Canadian Press was first published May 24, 2024.
Canadian Press
