Canadian retail sales reportedly declined 0.3% to $67.0 billion in January. Sales fell in three of the nine subsectors and were led by a decline in the motor vehicle business.
Core retail sales that exclude sales at gas stations and sales of fuel and motor vehicles and parts rose 0.4% in January.
Sales in the motor vehicle and parts sector fell for the first time in five months. The largest decline in retail sales in January was recorded by motor vehicle and parts dealers (-2.4%), which posted their first decline in five months. Lower sales at new car dealers (-3.0%) led the decline. Increases at used car dealers (+4.5%) and parts, accessories, and tire dealers (+2.1%) were more than offset by lower sales at other motor vehicle dealers (-7.4%).
Sales at gas stations and fuel sellers (+0.9%) increased in January. On the other hand, core retail sales rose 0.4% in January, posting a second consecutive monthly increase. The increase was led by increased sales at sporting goods, hobs, musical instruments, books, and miscellaneous goods dealers (+3.0%). In January, increased sales were also recorded at dealers in building materials and garden tools and supplies (+2.2%).
Statistics Canada provided an extended estimate of retail sales, which suggested that sales rose 0.1% in February. As this is a preliminary assessment, this figure will be re-evaluated. This unofficial estimate is calculated based on questionnaires received from 58.5% of the selected companies. The average final response rate to the survey over the past 12 months was 88.1%.
The CAD currency recorded a strengthening after this decision, with the USDCAD pair declining. Based on the 30-minute USDCAD chart, we can see that the pair tried to break through the 1.3580 resistance zone earlier today, but buyers failed to maintain the bullish momentum. The nearest support that is important to watch in case of a decline is in the area of 1.3550.
