MNI 5 THINGS: Canada Retail Sales Strengthen,Core Sales Weaken>

By Yali N'Diaye

     OTTAWA (MNI) - The following are the key points from the March 

data on Canadian retail sales released Friday by Statistics Canada: 

     - Retail sales rose 0.6%, more than the 0.2% gain expected by 

analysts in an MNI survey. The upside surprise was reinforced by an 

higher revision to February and January estimates, to 0.5% from 0.4% 

and to 0.3% from 0.1%, respectively. 

     - However, core sales excluding autos and parts contracted 0.2%, 

while analysts had anticipated a 0.5% increase. Autos and parts sales 

were up 3.0% on the month as volumes increased 3.6%. 

     - Overall sales increased in 6 of 11 subsectors representing 53% of 

retail trade. The picture in real terms was more favorable, as sales 

were up 0.8% on the month after rising 0.5% in February. In addition, 7 

of 11 subsectors recorded higher sales volumes. While building material 

and garden equipment and supplies were down 0.4% in nominal terms, the 

subsector recorded an increase of 0.3% in volumes. Regionally, sales 

expanded in 7 provinces, representing 93% of retail trade.  

     - Although gasoline prices rose 2.9% in March, according to the CPI 

report, gas station receipts were down 1.9% owing to a 2.5% drop in 

volumes. Sales excluding gasoline rose 1.0% on the month after expanding 

0.8% in February. Sales excluding gasoline and autos and parts edged up 

0.1% in March. 

     - Despite a strong end to the first quarter, total sales contracted 

0.4% after increasing 2.2% in the fourth quarter. In volumes, more 

relevant to real GDP, sales fell 1.0% in the first quarter, erasing the 

previous quarter's gain, indicating a weaker household spending 

contribution to growth over the period. 

--MNI Ottawa Bureau; email: yali.ndiaye@marketnews.com 

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