Canada Retail Sales Rise in March as Gas Prices Drive Gains

Retail sales in Canada rose in March, driven primarily by a sharp increase in gasoline prices, but underlying consumer spending appears to be weakening as households adjust to higher fuel costs. Statistics Canada reported Friday that retail sales increased 0.9 percent to $72.7 billion in March, exceeding analyst expectations.

The gain was largely fueled by sales at gasoline stations and fuel vendors, which surged 12.4 percent. Officials attributed the spike to higher oil and gas prices following recent geopolitical events. However, when measured in volume terms, sales in that subsector actually fell 1.9 percent, indicating consumers purchased less fuel despite paying more for it.

Core retail sales, which exclude gasoline stations, fuel vendors, and motor vehicle and parts dealers, declined 0.1 percent in March. Significant declines were recorded in several categories. Sales at building material and garden equipment dealers dropped 2.9 percent, while general merchandise retailers saw a 0.5 percent slip. Motor vehicle and parts dealers, a major component of total retail sales, also fell 0.5 percent. The only notable increase within core sales came from food and beverage retailers,...