Canada's retail sales up 1.1% in January, boosted by auto sales

By Promit Mukherjee

OTTAWA, March 20 (Reuters) - Canada's retail sales were up 1.1% in January on a month-over-month basis to C$69.65 billion ($50.81 billion) led by higher sales at motor vehicles and parts dealers, Statistics Canada said on Friday.

In December, retail sales fell 0.4% on a monthly basis.

Retail sales, which include domestic sales of cars, furniture, food and gasoline, are considered an early indicator of gross domestic product growth and contribute around 40% to total consumer spending.

Analysts polled by Reuters had forecast retail sales would increase 1.5% in January.

• Motor vehicle and parts sales, which contribute almost 28% of total retail sales, grew the most, increasing by 2% in January from December.

• Sales at gasoline stations and fuel vendors dropped 0.4%.

• Core retail sales, which exclude the impact of gasoline sales and motor vehicles and parts sales, registered an increase of 0.9% in January.

• The increase in core retail sales in January was led by higher sales at general merchandise retailers, marking a fourth consecutive monthly gain.

• In volume terms, sales were up 1% in January.

• An advance indicator for February sales shows sales likely rose 0.9% last month.

• Economists said the January data and February estimates signal first-quarter GDP could be healthy, but an oil shock due to the Iran war could impact consumer spending and retail sales in the coming months.

($1 = 1.3708 Canadian dollars)