MNI BRIEF: Canada Retail Sales Power Ahead In Feb

Canadian retail sales rose sharply in February, outpacing both central bank and financial market expectations, adding further evidence to the resilience of the economy in Q1 as firms and consumers adapted to the second-wave pandemic lockdown.

The 4% m/m increase was the fastest since the end of last spring's pandemic shutdown. The updated sales figure for January was -1.1%, again beating market consensus of 3.3% decline. Much of the swing in sales reflects restrictions local governments imposed around the end of last year and began lifting in February. This month, signs of a third wave have triggered further shutdowns.

Industry sources have told MNI the economy is showing some resilience as firms adapt and take advantage of pockets of stronger demand.