MNI DATA IMPACT:Canada Feb Retail Sales +0.8%,Top Expectations>

By Yali N'Diaye

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

Canadian retail sales released Thursday by Statistics Canada: 

     - Following three consecutive monthly declines, retail sales 

rebounded 0.8% in February, beating the market consensus of +0.4%. The 

increase was the largest since May 2018 and lifted the 12-month growth 

rate to 1.8% from 0.9%. The gain more than erased the 0.4% drop recorded 

in January, which was revised from -0.3%. 

     - Details were more mixed than the headline suggests. The gain was 

mostly a price story as real sales, more relevant to GDP, edged up just 

0.2%, failing to offset January's 0.3% decrease. 

     - In addition, gains were concentrated in 5 of 11 subsectors, even 

though they represented 73% of retail trade. A 3.1% increase in new car 

sales was the key driver that boosted motor vehicles and parts sales. 

The latter rose 1.4% overall. Excluding autos and parts, sales were up 

0.6% on the month. 

     - Higher sales also resulted from recovering oil prices, which 

boosted gasoline station receipts. The latter increased 1.9% in 

February, after falling 2.2% in January. However, it was mostly price 

related, as volumes increased just 0.7%. Sales excluding gasoline were 

up 0.7%. Core sales excluding autos and gas were still up 0.4% on the 

month, posting their first increase since September 2018. 

     - However, in real terms, core sales, excluding autos and gas, 

contracted 0.2%, recording their third consecutive decrease, providing 

no indication that consumer spending slowing momentum is turning around. 

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

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