Retail sales fall as GST holiday effect fades in January [Wealth Professional (Canada)]
Bank Of Montreal (BMO)
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Source: Wealth Professional
Retail sales in Canada declined 0.6 percent to $69.4bn in January, according to Statistics Canada. The drop followed a 2.6 percent surge in December, which coincided with the federal government's temporary sales tax pause on selected items, in place from December 14 to February 15. According to Bloomberg, Economist Katherine Judge at Canadian Imperial Bank of Commerce stated that “the downbeat data today appears to mostly be a normalization in activity after spending was pulled forward into December with the start of the GST holiday.” The January decline marked the first back-to-back monthly drop since mid-2023. In volume terms, retail sales fell 1.1 percent, the steepest decrease in two years. Core retail volumes, which exclude gasoline
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