24 March 2025 | Other

Retail sales in Canada declined in February amid trade turmoil and adapting to tax incentives

Retail sales in Canada declined in February amid trade turmoil and adapting to tax incentives

Retail sales in Canada declined for the second consecutive month. In February, the drop amounted to 0.4% after a 0.6% decline in January. Bloomberg reports that consumers scaled back their spending, fearing the consequences of trade tensions between Canada and the United States.

Benjamin Reitzes of Bank of Montreal suggested that consumer activity was impacted earlier by tax incentives. Referring to the December data, when sales increased by 2.6% due to tax benefits, the expert considers the current figures to be a result of stabilization of demand and concerns over trade tensions.

Catherine Judge from CIBC explains the current dynamics by the normalization of consumer activity after the agitation in December. The most pronounced decline in sales was registered in large cities, which demonstrated considerable decrease in retail revenues.

After consistently reducing interest rates over the past seven meetings, the Bank of Canada is now seeing a growing concern among citizens about financial security. Thus, the January sales decline came in line with a drop in demand for automobiles, food, and sporting goods. Excluding the auto sector, the increase was only 0.2% compared to 2.9% in December.

Period: 14.11.2026 Expectation: 3500 pips
Sell Bitcoin with $75,000 in view
30 October 2026 81
Period: 14.11.2026 Expectation: 150 pips
Go short on SPX down to $7,500
30 October 2026 102
Brent sell
Period: 29.11.2026 Expectation: 450 pips
Brent crude sell-off targets $105
29 October 2026 81
Period: 12.11.2026 Expectation: 28000 pips
Go long on NVIDIA stock up to $243
29 October 2026 86
Period: 28.11.2026 Expectation: 130 pips
Invest in SPX with 7,850 in view
28 October 2026 114
Period: 28.11.2026 Expectation: 4200 pips
Selling EURUSD down to 1.07000
28 October 2026 129
Go to forecasts