Canada’s retail sales declined 1.4% in March as consumers lowered their spending with interest rates remaining elevated.
Statistics Canada said the March drop in retail sales was the biggest monthly decline since July 2022.
The March decrease followed a 0.2% fall in February retail sales, added the federal agency.
Consumer spending in Canada is on the decline following one of the most aggressive interest rate-hiking cycles in the Bank of Canada’s history.
Statistics Canada cautioned that the March retail sales data is a preliminary estimate and could be significantly revised.
Revised February data shows that retail sales fell in four of nine sectors during the month, with lower purchases of gasoline driving the overall decline.
Retail sales in Canada’s two largest provinces, Ontario and Quebec, rose in February though they fell in most other parts of the country.
