Statistics Canada reported that retail sales rose 0.7% in February to $72.1 billion, marking a positive start to the year for the Canadian economy. The increase was primarily driven by higher sales at motor vehicle and parts dealers, which saw a 1.8% gain. Excluding this sector, retail sales were up 0.4%.
Key Highlights
Sales increased in seven of nine subsectors, representing 68% of total retail trade. Core retail sales, which exclude gasoline stations and motor vehicle and parts dealers, rose 0.3%.
In volume terms, retail sales increased 0.5% in February, indicating that consumers are spending more despite inflationary pressures.
Regional Performance
Provincially, sales were up in seven provinces. Ontario led with a 1.1% increase, followed by Quebec at 0.9%. Alberta saw a modest 0.3% gain, while British Columbia remained flat.
Statistics Canada noted that e-commerce sales also rose, accounting for 5.8% of total retail trade in February, up from 5.5% in the same month last year.
Industry Breakdown
Motor vehicle and parts dealers posted the largest gain, rising 1.8% to $16.2 billion. Food and beverage stores increased 0.7%, while clothing and accessories stores saw a 0.5% uptick. Gasoline stations, however, declined 0.4% due to lower prices at the pump.
The report suggests consumer confidence remains resilient, though higher interest rates may temper spending in the coming months. Economists will be watching March data for further signs of economic momentum.
