MNI: Canada Retail Sales Fell For A Second Month In February
MNI (OTTAWA) - Canadian retail sales fell for a second month in February according to a flash reading Friday from the federal statistics office, in line with other signs the economy faltered as the U.S. moved to a trade war.
Sales fell 0.4% in February according to a flash estimate from Statistics Canada, following January's 0.6% decline that was larger than the 0.4% fall expected by economists in an MNI survey. The last time sales posted consecutive declines was in May and June, just before the Bank of Canada began cutting interest rates.
January's decline was led by by a 3.2% decline at new car dealers, reflecting the end of some provincial rebates on electric vehicles that boosted sales through the fourth quarter. New car sales remained 9.3% higher than a year earlier.
Sales still declined 0.2% according to a core measure that removes autos and gasoline. They also dropped 1.1% on a volumes basis that removes the effect of short-term price changes.
There were mixed results across other categories during a time when consumers benefited from a temporary sales tax holiday and lower interest rates. Food and beverage sales fell 2.5% in January while furniture and appliances gained 3%. January's decline followed a strong December gain of 2.6%, and sales in January were 4.2% higher than a year earlier.