Key insights
- Canadian retail sales increased by 0.7% in February, slightly below the 0.9% forecast, with a 0.6% rise expected for March. While indicative of Canadian economic activity, the limited deviation from expectations and the focus on the Canadian market result in a slightly negative influence on U.S. equities, primarily through minor cross-border economic considerations.
OTTAWA, April 24 (Reuters) - Canadian retail sales rose 0.7% in February from January to C$72.06 billion ($52.68 billion) on higher sales at motor vehicle and parts dealers, Statistics Canada said on Friday.
In January, retail sales were up 1.1% on a monthly basis.
Retail sales, which include domestic sales of cars, furniture, food and gasoline, are considered an early indicator of gross domestic product growth and contribute around 40% to total consumer spending.
Analysts polled by Reuters had forecast retail sales would increase 0.9% in February.
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Motor vehicle and parts sales, which contribute almost 28% of total retail sales, increased 0.8% in February from January.
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Sales at gasoline stations and fuel vendors rose 0.1%.
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Core retail sales, which exclude the impact of gasoline sales and motor vehicles and parts sales, increased 0.6% in February.
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The rise in core sales was led by higher sales at general merchandise and food and beverage retailers.
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In volume terms, sales were up 0.3% in February.
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An advance indicator for March sales shows sales likely rose 0.6% last month.
($1 = 1.3679 Canadian dollars)