Each day TFO Canada publishes a sample of trade news on the Canadian import market along with any new, updated or changed regulations and legislations regarding international trade; countries in which TFO Canada offers services and on the export sectors which it promotes.
February Canadian Retail Sales Decline 0.6%, Underlying Sales Hold FirmFriday, April 28, 2017 > 09:40:21
Canadian retail sales declined 0.6% in February compared with expectations of a 0.1% fall for the month. The January gain was revised up slightly to 2.3% from the original 2.2% to give a year-on-year increase of 4.7%.
In volume terms, sales fell 0.1% to give a 2.1% annual increase.
Underlying sales declined 0.1% on the month compared with a consensus forecast of a 0.3% drop while the January increase was revised higher to 2.3% from 1.7% to give a 5.8% annual gain.
Sales of motor vehicles and parts declined 1.8% with the annual increase held to 1.5% and lower prices also pulled gasoline sales lower.
Excluding these two categories, sales rose 0.5% on the month.
Food and drink sales also fell slightly on the month, primarily reflecting a dip in purchases from liquor stores.
There was a firm increase of 2.2% for clothing sales while health and personal care sales rose 2.0% on the month to give an annual increase of 7.6%.
The data will maintain optimism surrounding underlying sales trends, especially with only a limited retreat after very strong January sales, but with further expectations that auto sales are moderating. There is no significant evidence that strength in the housing market is having an impact in boosting sales related to the housing sector. The short-term implications for monetary policy are likely to be limited.
The overall impact was limited with markets focussed more on underlying trade issues following the US move to impose tariffs on Canadian lumber imports.
In comments on Wednesday, the Canadian Foreign Minister stated that progress had been made on talks with the US, but that there was no deal yet.
The Canadian dollar strengthened fractionally with USD/CAD dipping to 1.3585 from 1.3590 and holding below 14-month highs above 1.3600 seen on Tuesday.