Canadian retail sales rose in March in response to trade tensions

Preliminary data from Statistics Canada showed an increase in retail sales by 0.7% in March, after a decline of 0.4% in February. According to experts surveyed by Bloomberg, this growth was driven by consumers seeking to outpace possible price increases caused by escalating trade tensions.

Despite the current positive dynamics, Corpay chief strategist Karl Schamotta forecasts a decline in the coming months. He believes that consumers' concerns about employment security and financial prospects are holding back growth in consumption, forcing the households to cut back on spending.

As Katherine Judge of CIBC notes, consumers have shown increased demand for goods at risk of being hit by tariffs. This is confirmed by record car sales, which reached their highest level since 2018.

At the regional level, the situation remains mixed. The indicator fell in 7 out of 10 provinces. The most significant decline was noted in Quebec, where sales fell by 0.9%, showing one of the largest drops in the country.