Canada Retail Sales Research Brief

Consumers could be front-loading. There was a 0.8 per cent monthly rebound in retail sales in March. As tariffs were set to take effect in April, some consumers may have been looking to get ahead of potential levies. Highlighting this was the 5.2 per cent jump in new motor vehicle sales – a sector highly exposed to trade uncertainties – rising despite the recent plunge in consumer confidence. Sales would have been much stronger were it not for the 6.5 per cent drop in gasoline sales, which was mainly due to lower prices. That said, spending held up, even amid uncertainties, and was also broad-based. Retail sales rose in six of the nine sub-sectors, and core retail sales jumped 0.2 per cent in March – the second consecutive monthly rise.