Canada: Retail Sales rise by 3.2% in January vs. 2.4% expected rise

Headline Retail Sales rose 3.2% MoM in January, above the expected 2.4%.
The loonie didn't react to the backward-looking data, with focus now much more on how the Russo-Ukraine war will impact things going forward.

Joel Frank Independent Analyst

Headline Canadian Retail Sales rose at a pace of 3.2% MoM in January, much stronger than the expected 2.4% gain, marking a strong rebound from December's Omicron Covid-19 variant induced drop of 1.8% MoM, data released by Statistics Canada showed on Friday. Retail Sales excluding autos also saw stronger than expected growth of 2.5% MoM versus expectations for 2.4% growth. That came after a 2.5% decline in December.

Market Reaction

The loonie has not reacted to the latest data release at all. It's not a surprise that Retail Sales rebounded strongly as Covid-19 infection rates/fears eased in Canada in January and focus is now much more on how the Russo-Ukraine war, which began in late February, will impact the global (and Canadian) economy going forward.

Author

Joel Frank

Independent Analyst

Joel Frank is an economics graduate from the University of Birmingham and has worked as a full-time financial market analyst since 2018, specialising in the coverage of how developments in the global economy impact financial asset

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