Statistics Canada reports retail sales down in January

Specifically, sales at new car dealerships dropped by 3.0 per cent, while used car dealerships saw a 4.5 per cent increase.

Statistics Canada reported on Mar 23 that a decline in new car purchases contributed to a 0.3 per cent decrease in the country's retail sales, totaling $67 billion in January.

The national data agency indicated that overall retail sales decreased in three out of nine subsectors it monitors, with sales at motor vehicle and parts dealers experiencing a 2.4 per cent decline, marking the category's first downturn in five months.

Specifically, sales at new car dealerships dropped by 3.0 per cent, while used car dealerships saw a 4.5 per cent increase.

These figures encompass a period when Canadians typically reassess their holiday spending habits, often scaling back on major purchases to manage credit card payments incurred from December festivities such as gift-giving and gatherings.

Despite the overall decline in retail sales, economists noted a positive aspect in January: core retail sales exceeded many expectations.

Core retail sales, which exclude sales from gas stations, fuel vendors, and motor vehicle and parts dealers, increased by 0.4 per cent in the first month of 2024.

This rise was largely driven by higher sales at sporting goods, hobby, musical instrument, book, and miscellaneous retailers, which experienced a 3.0 per cent increase.