March retail sales post slim gain
Retail sales in Canada in March grew by a slim 0.1 per cent to $35.5 billion as harsh winter weather across much of the country held back consumer purchases during the month.
Economists had been forecasting a rise of 0.3 per cent for March.
Coupled with a strong rise in sales in January and a decrease in February, overall sales for the first quarter were up 1.8 per cent, a growth rate similar to that of the previous quarter, Statistics Canada said Thursday.
A sales increase of 0.4 per cent posted by the automotive sector was offset by a 2.6 per cent drop in sales at clothing and accessories stores.
"The exceptional level of snow accumulation in March, particularly in Quebec, seems to have hit clothing sales especially hard," Statistics Canada said. "Consumers seem to have delayed their purchases of spring clothing."
The weather had a dampening effect on sales by general merchandise stores and by building and outdoor home supplies stores, the federal government agency said.
One economist said the retail sales are expected to remain healthy down the road.
"In real terms, which figures into the calculation of first quarter GDP out late next week, retail sales were up five per cent, which bodes well for first quarter personal consumption growth in the quarter," said TD Bank economist James Marple.
"Going forward, we expect some moderation in real retail sales growth as employment growth slows and the dampening effect on prices of the higher Canadian dollar begins to wear. Still, domestic spending is expected to remain an area of strength for the Canadian economy, and retailers, especially in the west, will continue to benefit from commodity boom-led income gains," Marple wrote in a commentary.
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