BC Under-performs Most Provinces
VANCOUVER, BC, Apr. 27, 2013/ Troy Media/ – Retail sales in B.C. edged lower in February following a January bounce, but held within the narrow range observed since mid-2012. Total current-dollar sales reached a seasonally-adjusted $5.11 billion during February marking a 0.4 per cent dip from the previous month.
B.C. underperformed most other provinces and was one of only two to record a monthly decline – a marked contrast to the acceleration in Canadian retail growth of 0.8 per cent. Same-month sales tumbled 4.2 per cent from 2012, but year-over-year comparisons were distorted by the additional sales day associated with leap year in 2012.
Lower discretionary spending in electronics/appliances, clothing and general merchandise has tempered retail sales activity in recent quarters. However, a mild rebound in home furnishing sales and higher gasoline prices provided an offset.
February’s retail report was a repeat of the theme in recent quarters. Retailers are being pinched by weak consumer demand. Population and employment growth is low, home prices have dipped and credit growth has decelerated sharply amidst elevated debt levels– not a tasty recipe for robust retail gains.
Through the first two months of 2013, current-dollar retail volume was down 0.7 per cent from 2012. We expect modest retail sales growth this year of about 2 per cent despite current weakness.
Growth in personal income and the shift back to a PST will likely boost the retail economy, particularly in the latter half of the year.
| Central 1 Credit Union
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