B.C. retail sales rise on fuel spike, but core spending slips
Metro Vancouver sees continued weakness while gasoline prices push national numbers higher in March.
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Canadian retail sales climbed 0.9 per cent to $72.7 billion in March on a seasonally adjusted basis, but the picture looks different once you strip out the fuel pump.
Sales at gasoline stations and fuel vendors jumped 12.4 per cent to $7.2 billion — the highest level since August 2022 — driven by war-induced price spikes. When you exclude those vendors, plus motor vehicles and parts dealers, core retail sales actually slipped 0.1 per cent. In volume terms, retail sales fell 0.7 per cent, meaning price increases account for most of the nominal growth.
In B.C., retail sales rose 0.5 per cent in March, with year-to-date growth of 1.8 per cent. But Metro Vancouver tells a darker story: seasonally adjusted sales fell 0.8 per cent in March, following a 1.1 per cent decline in February. General merchandise retailers posted the strongest performance after fuel, up 9.3 per cent, while motor vehicle dealers and building material suppliers both saw declines.
Small business confidence deteriorated sharply in May. The Canadian Federation of Independent Business reported its 12-month confidence indicator fell to 46.3 points from 58.5 in April — below the 50-point threshold that signals more firms expect weaker performance than stronger. Cost pressures remain elevated: fuel at 72 per cent, tax and regulatory costs at 64 per cent, insurance at 60 per cent, and wages at 60 per cent.