The Financial Post reports in its Saturday, March 22, edition that Canadian consumers reduced spending for the second consecutive month amid trade war uncertainty, with retail receipts falling 0.4 per cent in February following a 0.6-per-cent decline in January, according to Statistics Canada. A Bloomberg dispatch to the Post reports that this marks the first back-to-back decreases since mid-2023, highlighting the impact of the U.S.-Canada tariff war on consumption. While the Bank of Canada continues to cut interest rates to stimulate the economy, Canadians are increasingly concerned about job security and planning more cautious spending after a 2.6-per-cent spike in December tied to temporary tax breaks. January's retail figures may reflect that sentiment. Car dealers led decreases in sales that month, with food and beverage retailers as well as sporting goods stores also seeing declines. Excluding autos, receipts grew 0.2 per cent in January, a marked slowdown from December's 2.9-per-cent gain.
Core retail sales, which exclude gas stations and car dealers, were down 0.2 per cent in January. In volume terms, retail sales fell 1.1 per cent, the biggest decrease in two years.
© 2025 Canjex Publishing Ltd. All rights reserved.