Dominion Lending Centres Clearlease Canadians rein in spending in March as higher pump, food prices eat into wallets
VANCOUVER, BC (May 20, 2011) Clearlease Reports Excluding the impact of steadily rising food and gas prices, Canadian retail sales fell in March, in a trend economists say is likely to persist as higher prices for staples continue to eat into consumers’ wallets.
The value of retail sales in March was flat at $37.3 billion but after removing the effects of price changes, particularly higher food and gasoline prices, retail sales volume slipped 0.8 per cent, according to a Statistics Canada report Friday.
“That marks four months of stagnant sales, suggesting that consumers are struggling with higher gasoline prices and food costs eating into fixed budgets,” CIBC economist Emanuella Enenajor said in a report.
Consumers appear to be reining in spending after a post-recession spree that saw some Canadians’ rack up high levels of debt — prompting warnings against spending beyond one’s means.
Meanwhile, rising food and gasoline prices are outpacing tepid income growth, which means consumers have to dedicate more of their incomes to those staples and reducing spending in other areas.
High gas prices kept inflation above the Bank of Canada’s comfort zone for the second straight month in April, with the overall price index remaining at an elevated 3.3 per cent, according to another Statistics Canada report on Friday.
The monthly gain in prices rose by 0.3 per cent — virtually all attributed to a 6.4 per cent hike at the pump — following a 1.1 per cent jump the previous month. Food purchased at stores rose 3.7 per cent in April, the same annual increase as in March, while overall food prices rose at slightly reduced 3.3 per cent rate.
That could mean a persistently tough environment for retailers, who are finding it difficult to pass along higher commodity prices. Retail sales make up about 40 per cent of total consumer spending in Canada.
“While a late Easter and dreary weather may have had an impact on March sales, Canadian consumer spending is clearly losing some momentum as prices at the pump and grocery store move higher, while borrowing cools,” said Robert Kavcic at BMO Economics.
The largest dollar increase among subsectors was registered at gasoline stations, where sales were up 1.4 per cent, their eighth increase in nine months. Statistics Canada’s Consumer Price Index for gasoline has risen by nearly 40 per cent since March 2009.
The eight per cent jump in pump prices in March was followed by a 6.5 per cent increase in April, which will also have an impact in next month’s report, Kavcic said.
The Capital Economics report added that recent declines in commodity prices —notably oil — could eventually offer consumers some relief, but not likely until at least the third quarter of the year.
Gas prices have skyrocketed in recent weeks and remain at an elevated ….even though the price of oil has backed off from their recent highs. It takes months for any sustained lower oil prices to work their way down to pump prices.
Higher prices contributed to a 0.8 per cent rise in sales at general merchandise stores in March.
Sales at electronics and appliance stores, were up 2.1 per cent — increasing for a second consecutive month following three months of declines.
The higher gas prices don’t seem to be deterring consumers from spending on their vehicles.
After three consecutive monthly declines, sales at motor vehicle and parts dealers rose 0.3 per cent in March. Sales increased 0.8 per cent at new car dealers while the rest of the subsector showed declines.
However, weakness was broad-based, with seven of the major components reporting declines in March and four sectors posting gains. Furniture sales saw the biggest decline, followed by sporting goods, health and personal care.
The latest data was much weaker than economists had been expecting and will put a dent in first-quarter gross domestic product growth. Sales for the first quarter were down an annualized 3.1 per cent, but firm results in manufacturing, wholesale and housing should still support positive real GDP growth in March, Kavcic said.
The data confirms that real consumption growth slowed to just above one per cent annualized in the first quarter, well below the five per cent pace seen in the final three months of last year, a report from Capital Economics said.
“Given the past increases in the prices of essentials such as food and gasoline, there is a good chance that the weaker growth in sales volumes will persist through the second quarter.”
Retail sales rose in seven provinces in March. The largest increase in dollar terms was in Quebec, where sales increased 0.5 per cent, offsetting the loss in February. All of the Atlantic provinces registered sales increases in March. Retailers in Nova Scotia (up 2.4 per cent) led the gains following two months of declines.
Ontario (down 0.8 per cent) recorded the largest sales decline in March. This was the third decrease in Ontario in four months.
For more information please visit us at: http://www.clearlease.com/Career-Opportunities.html
About Dominion Lending Centres Clearlease
Dominion Lending Centres Clearlease Commercial (DLC Clearlease/Clearlease.com) is a fully diversified Lease Finance Mortgage Banking Brokerage Company specializing in Equipment Leasing, Automobile Leasing, Residential, Commercial Lending/Mortgage Financing. DLC Clearlease possesses the capability to accommodate financing needs ranging from a small second Home Mortgage to a Multi-Million Dollar Commercial Projects. No mortgage is too small or too large for this integrated Company.
Equipment Lease Financing in Vancouver, Surrey, Delta, Richmond, Langley, New Westminster, North Vancouer, West Vancouver, B.C. Also offering Automobile Lease Financing and Mortgage information. Founded by the Pidgeon brothers.
You may have recently seen a Dominion Lending advertisement on such media outlets as: Global News, CTV News, CBC Television, Rogers Sportsnet or possibly heard the great Don Cherry, a Canadian Sports legend, discuss Dominion Lending Centres.
Contact DLC Clearlease.com:
Dominion Lending Centres Clearlease
HEAD OFFICE, Bentall Two, Suite 900, 555 Burrard Street, Vancouver, BC, V7X 1M8, CANADA.
Mr. Alexander Pidgeon, Editor in Chief
Tel: (604) 696-1221 ext. 199
eMail: [email protected]
Website: http://www.clearlease.com
News: http://clearlease.com/category/equipment-lease-blog/feed/rss
Twitter: @clearlease
###
Video Link: http://youtu.be/f_kk7WJa7Uk
VANCOUVER, BC (May 20, 2011) Clearlease Reports Excluding the impact of steadily rising food and gas prices, Canadian retail sales fell in March, in a trend economists say is likely to persist as higher prices for staples continue to eat into consumers’ wallets.
The value of retail sales in March was flat at $37.3 billion but after removing the effects of price changes, particularly higher food and gasoline prices, retail sales volume slipped 0.8 per cent, according to a Statistics Canada report Friday.
“That marks four months of stagnant sales, suggesting that consumers are struggling with higher gasoline prices and food costs eating into fixed budgets,” CIBC economist Emanuella Enenajor said in a report.
Consumers appear to be reining in spending after a post-recession spree that saw some Canadians’ rack up high levels of debt — prompting warnings against spending beyond one’s means.
Meanwhile, rising food and gasoline prices are outpacing tepid income growth, which means consumers have to dedicate more of their incomes to those staples and reducing spending in other areas.
High gas prices kept inflation above the Bank of Canada’s comfort zone for the second straight month in April, with the overall price index remaining at an elevated 3.3 per cent, according to another Statistics Canada report on Friday.
The monthly gain in prices rose by 0.3 per cent — virtually all attributed to a 6.4 per cent hike at the pump — following a 1.1 per cent jump the previous month. Food purchased at stores rose 3.7 per cent in April, the same annual increase as in March, while overall food prices rose at slightly reduced 3.3 per cent rate.
That could mean a persistently tough environment for retailers, who are finding it difficult to pass along higher commodity prices. Retail sales make up about 40 per cent of total consumer spending in Canada.
“While a late Easter and dreary weather may have had an impact on March sales, Canadian consumer spending is clearly losing some momentum as prices at the pump and grocery store move higher, while borrowing cools,” said Robert Kavcic at BMO Economics.
The largest dollar increase among subsectors was registered at gasoline stations, where sales were up 1.4 per cent, their eighth increase in nine months. Statistics Canada’s Consumer Price Index for gasoline has risen by nearly 40 per cent since March 2009.
The eight per cent jump in pump prices in March was followed by a 6.5 per cent increase in April, which will also have an impact in next month’s report, Kavcic said.
The Capital Economics report added that recent declines in commodity prices —notably oil — could eventually offer consumers some relief, but not likely until at least the third quarter of the year.
Gas prices have skyrocketed in recent weeks and remain at an elevated ….even though the price of oil has backed off from their recent highs. It takes months for any sustained lower oil prices to work their way down to pump prices.
Higher prices contributed to a 0.8 per cent rise in sales at general merchandise stores in March.
Sales at electronics and appliance stores, were up 2.1 per cent — increasing for a second consecutive month following three months of declines.
The higher gas prices don’t seem to be deterring consumers from spending on their vehicles.
After three consecutive monthly declines, sales at motor vehicle and parts dealers rose 0.3 per cent in March. Sales increased 0.8 per cent at new car dealers while the rest of the subsector showed declines.
However, weakness was broad-based, with seven of the major components reporting declines in March and four sectors posting gains. Furniture sales saw the biggest decline, followed by sporting goods, health and personal care.
The latest data was much weaker than economists had been expecting and will put a dent in first-quarter gross domestic product growth. Sales for the first quarter were down an annualized 3.1 per cent, but firm results in manufacturing, wholesale and housing should still support positive real GDP growth in March, Kavcic said.
The data confirms that real consumption growth slowed to just above one per cent annualized in the first quarter, well below the five per cent pace seen in the final three months of last year, a report from Capital Economics said.
“Given the past increases in the prices of essentials such as food and gasoline, there is a good chance that the weaker growth in sales volumes will persist through the second quarter.”
Retail sales rose in seven provinces in March. The largest increase in dollar terms was in Quebec, where sales increased 0.5 per cent, offsetting the loss in February. All of the Atlantic provinces registered sales increases in March. Retailers in Nova Scotia (up 2.4 per cent) led the gains following two months of declines.
Ontario (down 0.8 per cent) recorded the largest sales decline in March. This was the third decrease in Ontario in four months.
For more information please visit us at: http://www.clearlease.com/Career-Opportunities.html
About Dominion Lending Centres Clearlease
Dominion Lending Centres Clearlease Commercial (DLC Clearlease/Clearlease.com) is a fully diversified Lease Finance Mortgage Banking Brokerage Company specializing in Equipment Leasing, Automobile Leasing, Residential, Commercial Lending/Mortgage Financing. DLC Clearlease possesses the capability to accommodate financing needs ranging from a small second Home Mortgage to a Multi-Million Dollar Commercial Projects. No mortgage is too small or too large for this integrated Company.
Equipment Lease Financing in Vancouver, Surrey, Delta, Richmond, Langley, New Westminster, North Vancouer, West Vancouver, B.C. Also offering Automobile Lease Financing and Mortgage information. Founded by the Pidgeon brothers.
You may have recently seen a Dominion Lending advertisement on such media outlets as: Global News, CTV News, CBC Television, Rogers Sportsnet or possibly heard the great Don Cherry, a Canadian Sports legend, discuss Dominion Lending Centres.
Contact DLC Clearlease.com:
Dominion Lending Centres Clearlease
HEAD OFFICE, Bentall Two, Suite 900, 555 Burrard Street, Vancouver, BC, V7X 1M8, CANADA.
Mr. Alexander Pidgeon, Editor in Chief
Tel: (604) 696-1221 ext. 199
eMail: [email protected]
Website: http://www.clearlease.com
News: http://clearlease.com/category/equipment-lease-blog/feed/rss
Twitter: @clearlease
###
Video Link: http://youtu.be/f_kk7WJa7Uk
Dominion Lending Centres Clearlease Canadians rein in spending in March as higher pump, food prices eat into wallets
VANCOUVER, BC (May 20, 2011) Clearlease Reports Excluding the impact of steadily rising food and gas prices, Canadian retail sales fell in March, in a trend economists say is likely to persist as higher prices for staples continue to eat into consumers’ wallets.
The value of retail sales in March was flat at $37.3 billion but after removing the effects of price changes, particularly higher food and gasoline prices, retail sales volume slipped 0.8 per cent, according to a Statistics Canada report Friday.
“That marks four months of stagnant sales, suggesting that consumers are struggling with higher gasoline prices and food costs eating into fixed budgets,” CIBC economist Emanuella Enenajor said in a report.
Consumers appear to be reining in spending after a post-recession spree that saw some Canadians’ rack up high levels of debt — prompting warnings against spending beyond one’s means.
Meanwhile, rising food and gasoline prices are outpacing tepid income growth, which means consumers have to dedicate more of their incomes to those staples and reducing spending in other areas.
High gas prices kept inflation above the Bank of Canada’s comfort zone for the second straight month in April, with the overall price index remaining at an elevated 3.3 per cent, according to another Statistics Canada report on Friday.
The monthly gain in prices rose by 0.3 per cent — virtually all attributed to a 6.4 per cent hike at the pump — following a 1.1 per cent jump the previous month. Food purchased at stores rose 3.7 per cent in April, the same annual increase as in March, while overall food prices rose at slightly reduced 3.3 per cent rate.
That could mean a persistently tough environment for retailers, who are finding it difficult to pass along higher commodity prices. Retail sales make up about 40 per cent of total consumer spending in Canada.
“While a late Easter and dreary weather may have had an impact on March sales, Canadian consumer spending is clearly losing some momentum as prices at the pump and grocery store move higher, while borrowing cools,” said Robert Kavcic at BMO Economics.
The largest dollar increase among subsectors was registered at gasoline stations, where sales were up 1.4 per cent, their eighth increase in nine months. Statistics Canada’s Consumer Price Index for gasoline has risen by nearly 40 per cent since March 2009.
The eight per cent jump in pump prices in March was followed by a 6.5 per cent increase in April, which will also have an impact in next month’s report, Kavcic said.
The Capital Economics report added that recent declines in commodity prices —notably oil — could eventually offer consumers some relief, but not likely until at least the third quarter of the year.
Gas prices have skyrocketed in recent weeks and remain at an elevated ….even though the price of oil has backed off from their recent highs. It takes months for any sustained lower oil prices to work their way down to pump prices.
Higher prices contributed to a 0.8 per cent rise in sales at general merchandise stores in March.
Sales at electronics and appliance stores, were up 2.1 per cent — increasing for a second consecutive month following three months of declines.
The higher gas prices don’t seem to be deterring consumers from spending on their vehicles.
After three consecutive monthly declines, sales at motor vehicle and parts dealers rose 0.3 per cent in March. Sales increased 0.8 per cent at new car dealers while the rest of the subsector showed declines.
However, weakness was broad-based, with seven of the major components reporting declines in March and four sectors posting gains. Furniture sales saw the biggest decline, followed by sporting goods, health and personal care.
The latest data was much weaker than economists had been expecting and will put a dent in first-quarter gross domestic product growth. Sales for the first quarter were down an annualized 3.1 per cent, but firm results in manufacturing, wholesale and housing should still support positive real GDP growth in March, Kavcic said.
The data confirms that real consumption growth slowed to just above one per cent annualized in the first quarter, well below the five per cent pace seen in the final three months of last year, a report from Capital Economics said.
“Given the past increases in the prices of essentials such as food and gasoline, there is a good chance that the weaker growth in sales volumes will persist through the second quarter.”
Retail sales rose in seven provinces in March. The largest increase in dollar terms was in Quebec, where sales increased 0.5 per cent, offsetting the loss in February. All of the Atlantic provinces registered sales increases in March. Retailers in Nova Scotia (up 2.4 per cent) led the gains following two months of declines.
Ontario (down 0.8 per cent) recorded the largest sales decline in March. This was the third decrease in Ontario in four months.
For more information please visit us at: http://www.clearlease.com/Career-Opportunities.html
About Dominion Lending Centres Clearlease
Dominion Lending Centres Clearlease Commercial (DLC Clearlease/Clearlease.com) is a fully diversified Lease Finance Mortgage Banking Brokerage Company specializing in Equipment Leasing, Automobile Leasing, Residential, Commercial Lending/Mortgage Financing. DLC Clearlease possesses the capability to accommodate financing needs ranging from a small second Home Mortgage to a Multi-Million Dollar Commercial Projects. No mortgage is too small or too large for this integrated Company.
Equipment Lease Financing in Vancouver, Surrey, Delta, Richmond, Langley, New Westminster, North Vancouer, West Vancouver, B.C. Also offering Automobile Lease Financing and Mortgage information. Founded by the Pidgeon brothers.
You may have recently seen a Dominion Lending advertisement on such media outlets as: Global News, CTV News, CBC Television, Rogers Sportsnet or possibly heard the great Don Cherry, a Canadian Sports legend, discuss Dominion Lending Centres.
Contact DLC Clearlease.com:
Dominion Lending Centres Clearlease
HEAD OFFICE, Bentall Two, Suite 900, 555 Burrard Street, Vancouver, BC, V7X 1M8, CANADA.
Mr. Alexander Pidgeon, Editor in Chief
Tel: (604) 696-1221 ext. 199
eMail: [email protected]
Website: http://www.clearlease.com
News: http://clearlease.com/category/equipment-lease-blog/feed/rss
Twitter: @clearlease
###
Video Link: http://youtu.be/f_kk7WJa7Uk