Canadian retail sales unexpectedly slipped 0.1% in March from February, dragged down by lower car and clothing sales but still very close to an all-time high as consumers continued to power economic growth.
Figures released this morning by Statistics Canada revealed that markets expected sales to climb 0.3% in the month but instead, dipped to $41.07 billion. StatsCan also revised the February sales figure to a record high of $41.11 billion from $41.03 billion previously.
In volume terms, sales decreased 0.2% in March.
Consumer spending and the housing market have been the big drivers of economic growth in Canada for the past five years and policymakers are looking to businesses, particularly exporters, to take over that role.
The motor vehicles and parts sector was the biggest contributor to the decrease in retail sales, falling 0.7%. Excluding autos, retail sales were up 0.1%. Clothing and accessories store sales declined 1.4%.
Offsetting the weakness was a 0.8% jump in receipts at gasoline stations and a 0.4% rise at food and beverage stores.
Decreases were reported in seven of the 11 sectors, representing 59% of retail sales.
StatsCan concluded that, in the year to March, retail sales rose 3.9%.
