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Canada retail sales up 3.2% in January, seen falling 0.5% in February -Breaking

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© Reuters. FILE PHOTO – A woman walks past a display window outside of a store in Ottawa (Ontario, Canada), July 21, 2017. REUTERS/Chris Wattie

By Julie Gordon

OTTAWA, (Reuters) – Canadian retail sales rebounded in January as customers ventured to home improvement and car dealers, according to official data. However, February sales are likely down.

Statistics Canada stated that January saw retail sales rise 3.2%, to C$58.94Billion (or $46.7 billion). This is due to increased sales of parts and motor vehicles. The average analyst forecast a growth of 2.4%.

According to Statscan, February retail sales are likely to have fallen 0.5% in February. This is a preliminary estimate.

In January sales increased in nine subsectors, which represents 85.5% retail trade. Retail sales increased 2.9% in volume terms.

Avery Shenfeld (chief economist, CIBC Capital Markets), stated in a note that “it was a happy New Year for Canadian retailers” in January.

Statscan stated that the expected decrease in February was due to responses from 36.6% companies. Over the past 12 months, the average survey response rate was 89.9%.

Economists say that a drop in February retail sales will not change the Bank of Canada’s current rate hike path.

Shenfeld said that the markets won’t respond to the monthly growth indicators as it will take more than just a bump to shift the Bank of Canada’s current trajectory.

Canadian dollars traded almost unchanged at 1.2631 against the greenback or 79.17 U.S.cents.

($1 = 1.2630 Canadian dollars)

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