Canada Retail Sales: December Up 0.9%, January Down 0.4%

Canadian Consumers Reduce Spending Following Holiday Season Surge, Reflecting Impact of High Interest Rates

Canadian consumers have scaled back their spending after a significant surge in retail purchases during the holiday season, highlighting the influence of high interest rates on household budgets. Sales in December increased by 0.9% to a seasonally adjusted 67.30 billion Canadian dollars, according to an advance estimate by Statistics Canada. However, there was a notable 0.4% decline in sales last month, the largest in nine months, indicating a potential softening of sales as unemployment rises and families face higher mortgage rates.