OTTAWA, May 22 (Reuters) – Canada’s retail sales in March grew by 0.9%, beating expectations, to C$72.67 billion ($52.64 billion) primarily led by sales at gasoline stations and fuel vendors, as higher prices of gasoline at pumps due to the Iran war boosted the value of the fuel sold, data showed on Friday.
• The March rise follows another upward move of 0.7% observed in February.
• Retail sales, which include domestic sales of cars, furniture, food and gasoline, are considered an early indicator of gross domestic product growth and contribute around 40% to total consumer spending.
• Analysts polled by Reuters had forecast retail sales would increase 0.6% in March.
• Sales at gasoline stations and fuel pumps, which contribute up to a tenth of total retail sales, jumped by 12.4% in March, Statistics Canada said.
• Sales of food and beverages, especially led by sales at supermarkets and grocery stores, increased by 0.5% in March.
• Other contributors to the rise in retail sales were purchases at health and personal care retailers and sales at clothing retailers.
• The biggest downward pull in percentage terms was seen in building material category, which dropped by 2.9%.
• However, the biggest component of retail sales – mortor vehicle and parts dealers which contribute to one-fourth of the total sales—was down 0.5%, led by a 4% drop in sales of used car dealers.
• Sales increased in four of nine subsectors, but in volume terms, retail sales were down 0.7% in March, StatsCan said.
• An advanced indicator showed that retail sales could likely be up by 0.6% in April.
($1 = 1.3804 Canadian dollars)
(Reporting by Promit Mukherjee and Dale Smith)
Comments