(Bloomberg) -- Canadian retailers emerged from months ofslumping sales with a sharp rebound in February that may easesome worries about consumer weakness.
Retailers posted a 0.8 percent gain in sales on the month,Statistics Canada said Thursday from Ottawa, versus economistexpectations for a 0.4 percent gain. February's increase was thestrongest since May 2018, and follows six straight months ofnegative or flat readings -- including a 0.4 percent decline inJanuary -- that fueled concern about slowing householdconsumption.
Key Insights
- A pick-up in receipts was expected on the back of rising prices for gasoline, but the numbers suggest Canadians were in a spending mood beyond the extra cost of filling up their tanks. New car dealers saw a 3.1 percent increase in sales, while strong gains were also recorded at general merchandise stores and supermarkets.
- The retail figures will restore confidence the nation's economy is poised for a better start to this year, after the economic expansion nearly came to a halt at the end 2018.
- While first quarter gross domestic product numbers won't be released until the end of next month, there were a series of negative readings in February for exports and manufacturing that raised questions around growth for that month. February GDP data is due April 30.
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- In volume terms, retail sales were up 0.2 percent in February.
- Sales were up in only five of 11 subsectors, but those sectors were the largest ones and represent 73 percent of total sales.
- Excluding autos, sales were up 0.6 percent -- topping expectations for a 0.2% gain. That follows a 0.6 percent decline for this gauge in January.
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