Canada Retail Sales Research Brief

Household consumption gaining momentum. Retail sales rose 1.1 per cent monthly in January, translating into a 1.5 per cent year over year jump. This was an improvement from December’s decline but came in slightly below preliminary expectations. The increase was largely driven by a 2 per cent gain in motor vehicle and parts sales, as activity normalized following seasonal re-tooling shutdowns. Core retail sales — excluding autos and gasoline — also posted a solid 0.9 per cent increase, supported by stronger spending at sporting goods, hobby, and personal care retailers.