Retails sales across the country were down in March after seeing modest growth in the first two months of 2016.
The largest drop in sales, which retracted 1% in March were from auto dealerships (-3%) while clothing and shoe sales rose 1.5%. The Consumer Price Index rose 0.2% in April for the second straight month, led largely by an increase in the energy (3.8%) and gasoline (8.9%) sectors. Overall in 2016 retail sales are still up 6.5%, led largely by 2% growth in January.
BMO Financial chief economist Douglas Porter stated in a report about the Stats Can numbers that were released May 20 that “regionally, every province but mighty PEI saw retail sales decline in March, but the shake-up from lower oil prices on the retail landscape remains fully evident when zooming out.”
Gasoline station sales are down 30.1% since the start of the year and April saw the highest rise in prices so far in 2016. However sales in prescription drugs (32.7%) and clothing and shoes (19.5%) added to growth gains.
“One source of relief for consumers is that food prices are moderating after the early-year surge,” added Porter. “Fresh veggie and fruit prices are still up about 11% (from last year at this time), but that’s milder than during the great cauliflower crisis earlier this year.”
@BIVnews
