Canada Retail Sales Research Brief

Consumption holds strong, but momentum under pressure. Retail sales volumes rose 0.3 per cent month-over-month in February, slightly below expectations but still pointing to a resilient consumer backdrop. In value terms, sales increased 0.7 per cent, supported by broad-based gains across discretionary categories, including motor vehicles, apparel, and general merchandise. However, weakness persisted in housing-related segments, with declines in building materials and home furnishings reflecting ongoing softness in residential activity. Overall, while February’s figures suggest consumption continues to support economic growth, the modest gain indicates a slightly softer contribution to first-quarter GDP than previously expected.