MNI DATA REACT: Canada Retailer Sentiment Rose Amid BOC Worry

--Small Business Barometer Shows Biggest Retailer Gain In a Year

By Greg Quinn

     OTTAWA (MNI) - Canadian retailer confidence rose the most in more than a

year in February, suggesting resilience in domestic spending as the Bank of

Canada considers a rate cut to boost demand.

     The Canadian Federation of Independent Business said its retail index

climbed 8.6 points to 61.0, the second-biggest gain among the 13 industries it

tracks. The headline Barometer climbed 5.2 to 60.5, the highest since August

according to a report Thursday. 

     Other industries linked to consumer spending also advanced, including

hospitality and arts and recreation.

     The CFIB does one of the most detailed monthly surveys of business

sentiment across its 110,000 members, and the current poll had 839 responses.

Most of them were gathered early in the month before railway blockades that

disrupted shipments between Toronto and Montreal.

     "It looks like there is some cautious optimism in the small business sector

early in the month," said Ted Mallett, CFIB's chief economist.

     The biggest February gain was for natural resource companies, which have

been battered in recent years by lower oil prices and the U.S.-China trade

dispute. Only two industries showed small declines in February: transport and

financial services. 

--MNI Ottawa Bureau; +1 613-314-9647; email: greg.quinn@marketnews.com

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