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Canada's Retail Sales Dip 0.4%, January Rebound Expected

2/20/2026

42 3 Full Breakdown

Summary

Story summary

Canadian retail sales fell 0.4% in December 2025 to C$70 billion, led by motor vehicle and parts sales.
Core retail sales, excluding motor vehicles, declined 0.3% in December 2025.
Shelly Kaushik, Bank of Montreal (BMO) economist, described December's results as "a mixed bag."
Early estimates indicate a 1.5% rebound in January 2026.
Retail sales are up 4% year over year.

History

Historical Context

The 2008 global financial crisis significantly impacted Canada, leading to a recession that officially began in Q4 of that year. Retail sales dropped by 3.5%, with the Bank of Montreal noting widespread economic uncertainty. The current decline of 0.4% in December 2025 reflects ongoing consumer caution, echoing past economic volatility, while a projected 1.5% rebound in January 2026 hints at potential recovery.

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Story summary

Canadian retail sales fell 0.4% in December 2025 to C$70 billion, led by motor vehicle and parts sales.
Core retail sales, excluding motor vehicles, declined 0.3% in December 2025.
Shelly Kaushik, Bank of Montreal (BMO) economist, described December's results as "a mixed bag."
Early estimates indicate a 1.5% rebound in January 2026.
Retail sales are up 4% year over year.

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