(March 23 – 11:50 ET) – Of the big brokers, only CIBC World Markets is bothering to
weigh in on this morning’s retail sales data. It is saying the flat results mask a strong industry.

CIBC says that despite the fact that retail sales were flat month over month for January, the results were skewed by Y2K stockpiling that boosted food sales in December and then slipped in January. Discounting the effect of food retail, sales were actually up 1.1% month over month. Falling prices also helped drag down the headline number.

The bank’s economists say they have boosted their real GDP growth outlook for Q1 to 4%. A revision that is supported by this early result, particularly the strength in car and furniture and appliance sales. If nothing else some stocks should benefit, “Today’ s data are supportive for Canadian retailing equities.”
-IE Staff