Recent retail sales far weaker than initial estimates, revisions suggest

OTTAWA Canadian retail sales during the crucial holiday shopping season were far lower than previously projected as consumers appeared to pull back on spending.

Statistics Canada has released revised estimates for its retail-trade figures — and they are considerably weaker when compared to the initial readings published by the federal agency.

The agency now estimates retail sales for November contracted 1.1 per cent compared to the previous month, which is a downward revision from its previous figure of 0.5 per cent growth. For december, the agency now says retail trade likely fell 1.2 per cent, which is deeper than its previous estimate of just a 0.7 per cent contraction. The report says retail sales grew by only 0.1 per cent in January, compared to the initial estimate of a 0.3 per cent expansion.

Statistics Canada also released its monthly number for February, when it estimates retail sales increased 0.4 per cent to $49.8 billion — with the biggest increases coming from new car dealers and general merchandise stores.

Analysts polled by Reuters had expected a 0.3-per-cent gain for February. The month-on-month increase was the largest since the 3.3 per cent jump seen in October 2017.

Overall, sales grew in just four of the 11 subsectors, representing 47 per cent of retail trade. In volume terms, sales edged up 0.3 per cent.

Sales at motor vehicle and parts dealers — which represented more than a quarter of all retail trade in February — posted a 1.4-per-cent gain from January. excluding autos, retail sales were unchanged.

!eneral merchandise stores posted a 2.0-per-cent gain, the fourth increase in five months. Sales at gasoline stations fell by 0.9 per cent, the first decline since June.