Canadian retail sales rose by 0.9 per cent in March even though higher inflation , United States tariffs and geopolitical tensions are affecting the economy.
Retail sales were also up 2.1 per cent in the first quarter of 2026, the seventh consecutive quarterly increase, Statistics Canada said on Friday.
Advanced estimates suggest retail sales increased by 0.6 per cent in April, which would mark the first time retail sales rose for four consecutive months since 2022.
Consumer spending edged up in March across most sectors, with the largest gains being at gas stations and fuel vendors, which rose by 12.4 per cent. This coincided with higher gas prices due to the oil price shock resulting from the war on Iran, Statistics Canada said.
Motor vehicle and car part sales decreased for the first time after two consecutive monthly increases, with lower sales at used car dealers leading the decline. Automotive parts, accessories and tire retailers were the only industry within this subsector to post an increase.
Core retail sales in March, which exclude gasoline and car deals, were down 0.1 per cent after two consecutive monthly gains. Lower sales in building materials, garden equipment, and supply dealers led to this decline. General merchandise retailers also had lower sales and fell for the first time in three months.
In volume terms, retail sales decreased by 0.7 per cent in March and increased by 1.2 per cent in the first quarter.
Economic growth remained slow in Canada as U.S. tariffs and the uncertainty surrounding the Canada-U.S.-Mexico Agreement continue to challenge some industries. But the Canadian economy likely dodged a recession, with preliminary figures suggesting real gross domestic product grew 0.4 per cent in the first quarter.
ptran@postmedia.com