MNI: Canada Jan Retail Sales Fall After Strong Fourth Quarter
MNI (OTTAWA) - Canadian retail sales fell in January for the first time since June, giving back some of the strong momentum in the fourth quarter.
Sales were down 0.4% in January according to a flash estimate from the government statistics office Friday. The decline followed Statistics Canada's official December reading of a 2.5% gain, the fastest since May 2022.
StatsCan said the fourth quarter of last year saw 2.4% growth, the fastest since the second quarter of 2022. Investors are looking to official Q4 GDP figures which will be published Feb. 28.
In December sales rose in all nine sub-sectors, led by food and beverage and autos. Food and drink purchases were given a boost by the government's two-month sales tax holiday on those items that began Dec. 14.
The data leave in place some tension between a domestic economy boosted by the Bank of Canada's six rate cuts that began in June and the potential chill from threats of a trade war with the U.S. Consumer spending may also be pinched in coming months as more households will still end up renewing five-year loans at higher rates.
The BOC’s upcoming interest rate decision on March 12 has investors divided between a hold and a seventh consecutive cut. Governor Tiff Macklem is set to speak later today on "trade friction, structural change and monetary policy" in Toronto.