Cars and trucks flying off the lots as Canadians rush to beat tariffs

The motor vehicle and parts sector rose 4.8 per cent, up for the first time in three months, with higher sales at new car dealers driving the increase. Photo by Canadian Tire

Article content

Canadian consumers kept on spending last month, defying a tariff war that threatens their employment and wealth.

THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY

Subscribe now to read the latest news in your city and across Canada.

Exclusive articles from Barbara Shecter, Joe O’Connor, Gabriel Friedman, and others.
Daily content from Financial Times, the world’s leading global business publication.
Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
Daily puzzles, including the New York Times Crossword.

SUBSCRIBE TO UNLOCK MORE ARTICLES

Subscribe now to read the latest news in your city and across Canada.

Exclusive articles from Barbara Shecter, Joe O’Connor, Gabriel Friedman and others.
Daily content from Financial Times, the world’s leading global business publication.
Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
Daily puzzles, including the New York Times Crossword.

Create an account or sign in to continue with your reading experience.

Access articles from across Canada with one account.
Share your thoughts and join the conversation in the comments.
Enjoy additional articles per month.
Get email updates from your favourite authors.

THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.

Create an account or sign in to continue with your reading experience.

Access articles from across Canada with one account
Share your thoughts and join the conversation in the comments
Enjoy additional articles per month
Get email updates from your favourite authors

Sign In or Create an Account

Article content

An advance estimate suggests receipts for retailers rose 0.5 per cent in April, Statistics Canada said Friday. That extended a 0.8 per cent gain in March, which beat the median projection in a Bloomberg survey of economists.

Article content

The better-than-expected March figures came after retail sales fell in January and February on a seasonally-adjusted basis. Overall, they were up 1.2 per cent in the first quarter, the fourth consecutive quarterly increase, as sales were boosted in the latter half of 2024 when the Bank of Canada’s interest-rate cuts boosted spending before US tariffs soured consumer confidence.

Article content

March’s strong gain was driven by higher sales of cars and trucks, likely a result of Canadians trying to beat price hikes related to the Trump administration’s tariffs. The motor vehicle and parts sector rose 4.8 per cent, up for the first time in three months, with higher sales at new car dealers driving the increase.

Article content

By signing up you consent to receive the above newsletter from Postmedia Network Inc.

Article content

Excluding autos, sales declined 0.7 per cent, lower than economist estimates.

Article content

Article content

Core retail sales, which exclude gas stations and car dealers, rose 0.2 per cent in March, led primarily by building material and garden equipment dealers, followed by clothing, jewelry and luggage retailers.

Article content

Sales at gas stations and fuel vendors fell 6.5 per cent in March after five consecutive monthly increases, as gas prices dropped that month.

Article content

In volume terms, retail sales were up 0.9 per cent in March.

Article content

Regionally, retail sales increased in eight of 10 provinces. The largest provincial increase in dollar terms was in Quebec, which saw a 1.6 per cent bump, with sales in its largest city of Montreal rising 3.1 per cent.

Article content

In Ontario, retail sales increased 0.6 per cent in March, led by higher auto sales, but retail sales fell 1 per cent in Toronto. The largest provincial decrease of 1.6 per cent was in Manitoba, led by lower gas station sales.

Article content

The statistics agency didn’t provide sectoral or provincial details for the April estimate. The figure was based on responses from 60.2 per cent of companies surveyed, versus the average final response rate of 91 per cent over the previous 12 months.

Article content

Data from DesRosiers Automotive Consultants suggests auto dealers enjoyed another strong bump in sales in April.

Article content

— With assistance from Mario Baker Ramirez.

Article content