The Canadian retail sales in March 2010 surged 2.1% to C$37 Billion ($34.5 Billion) on the back of high sales by motor and parts dealers and warn weather conditions.
According to the data released by Statistics Canada, the retail sales in Canada increase more than predicted during March 2010. The retail sales rose surged 2.1% to C$37 Billion ($34.5 Billion), the tenth gain over the eleven months and the highest increase since February 2005, as reported by Bloomberg Businessweek
Motor parts and vehicle dealers played a major part in the growth recorded during March 2010. Motor parts and vehicle dealers posted receipts growth of 3.6% to C$8.1 Billion. New car dealers’ sales augmented 3.5% in March 2010, but the exclusion of car and parts dealers’ sales, the retail sales in the country grew 1.7%. Moreover, accessories and clothing stores registered the highest increment over the past four years.
However, the biggest setback was received by beer, wine and liquor stores which posted sales decline of 4.7%. This downfall also reflects that retracement from 4.6% increase in February 2010 when the Olympic games were held in British Columbia.
The noticeable fact is that the retail sales jumped in all the provinces, with Labrador and Newfoundland posted the biggest increase at 3.1%. Besides, Ontario and Quebec also witnessed a big increase of 2.7% and 2.8% respectively.
Warm whether conditions also spurred retail sales in March 2010 at some types of stores. For instance – gas stations sales picked up for the eleventh consecutive month. Apart from this, the retail sales gained momentum on the back of improvement of the Canadian housing market. The effect of rise in the housing market could be seen on high demand for garden equipments.
Another important factor for upsurge in retail sales could be the detraction of locals from spending owing to the Olympics in February 2010. The effect of this detraction visualized in the month of March when locals headed towards malls for big purchases.
According to a Research Analyst at RNCOS
, “This increase in personal spending is likely to have a positive impact on the domestic economy. In fact, the growth in the retail sector suggests that it played a supportive role to the overall GDP growth in March 2010. This emphatic improvement in economy will help the consumers to become confident with regard to their spending in coming months.”
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