Canada February retail sales +0.1% vs -0.4% expected

[Forex News]

March flash estimate +1.4% February flash estimate was -0.5% January reading was +3.2% (revised to +3.3%) Ex autos +2.1% vs 0.0% expected Prior ex autos +2.5% Ex autos and gas +1.4% vs +2.4% prior Sales up in 6 of 11 subsectorsThe Canadian economy re-opened in March after lockdowns in Jan/Feb. The ongoing strength through the lockdowns and signs of further growth in March are positive. Canadians are riding high on a wave of home price appreciation but there is a big risk that some of that reverses.Details: Clothing +15.1% Shoes +12.4% Building material and garden equipment and supplies dealers +5.6% vs +8.9% prior (sixth gain in seven months) General merchandise stores -1.2% New auto sales -4.6% vs +5.5% prior E-commerce sales -23.1% vs -14.4% y/y priorOne worrisome sign is on autos, where sales of new vehicles were down 11.0% compared to Feb 2021; though we will have to wait until March to see if that was lockdown-induced or something more. Inventories are brutally tight and that could be a factor as well.That ecommerce number doesn't bode well for Amazon. Inflation is a bit of a factor as volumes were down 0.4% m/m in Feb. CAD is a touch stronger on the headlines but has been beaten up today on the broad USD bid.

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