Ottawa, Ontario, April 21, 2006--Canadian retail sales dropped by 0.4 percent in February, the first decline after four months of increases, largely because of a sharp drop in automotive sales, Statistics Canada said on Friday.
Analysts had expected a 0.3 increase from January, when sales surged 1.2 percent from December. Statscan, which revised January's increase down from an initial 1.4 percent, said retail sales hade maintained a strong upward momentum since late 2003.
"The automotive sector was responsible for the bulk of the setback, with sales falling 2.5 percent after four straight months of increases," Statscan said in its daily bulletin, blaming weak sales at new car dealers and gasoline stations. Excluding the sector, sales rose by 0.3 percent in February.
Retailers in sectors that experienced strong January sales--likely due to the redemption of gift cards and increased observance of cultural and ethnic holidays--saw declines in February but these did not offset the gains made in January.
Those affected included miscellaneous retailers, furniture and general merchandise stores. The building and outdoor home supplies sector increased sales by 1.0 percent in February after a 3.2 percent leap in January.
