Statistics Canada reported relatively flat retail sales for March as a slump in car sales brought down increased consumer spending during the month. Total sales reached $60.1 billion for the month, around the same as February.
Initial estimates showed a rise in sales of 0.8% for April, however this figure will be altered to fit new estimates based off of March’s performance.
“With a rotation of demand away from goods and towards services, we would expect retail sales to slow in coming months,” stated CIBC senior economist Karyne Charbonneau.
Outside of the vehicle market however retail growth was fairly positive. Sales were up in 10 of the 11 subsectors Statistics Canada monitored. In contrast to this growth vehicle parts sales fell 6.4% alongside a drop in car sales of 5.9%.
Macro strategist with BMO Capital Markets Benjamin Reitzes stated in a client note that “A lack of supply, as chip shortages hamper production, continues to weigh on vehicle sales.”
“That’s been a theme for some time, but is expected to ease as we work through 2022.”
Higher prices at the pump meant that gas station sales would rise by 7.4% however, counteracting the falling car sales.
Retail sales outside of motor-vehicles rose 1.4 during the month, the rising sales being a result of building and gardening equipment sales rising 3.7%, according to Statistics Canada. Alongside this, clothing sales continued to rise 2.2%, the after-effect of the massive 15.5% jump in February. Part of this ahs to do with the re-opening public and office spaces across the nation.
The volume of total sales fell however by 1% in March, a reflection of the skyrocketing inflation prices. “It’s clear that inflation is eroding purchasing power,” Reitzes stated.
Digitally speaking, e-commerce sales fell 1.9% that month in comparison to a year ago. The sales fell 24.6% over the year.
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