08:56 AM EDT, 05/23/2025 (MT Newswires) -- Canadian consumers haven't tightened the purse strings much it seems, in the face of tariff uncertainty, said CIBC.

Headline retail sales posted a "solid" 0.8% month-over-month advance in March (while consensus +was for a 0.7% rise, although that was largely driven by auto sales which may have been bolstered by households choosing to purchase ahead of possible tariff-driven price increases. noted the bank.

Excluding autos, sales fell by a worse-than-expected 0.7% month over month due to lower gasoline prices, stated CIBC after Friday's retail sales data. Sales excluding auto and gasoline edged up 0.2% month over month, led by building materials and clothing.

Overall sales volumes rose by 0.9% in March, but were up by only 0.2% unannualized over Q1 as a whole.

However, the advance estimate for April suggested that overall sales in Canada rose by a further 0.5% month over month, which is a little firmer than the bank would have expected given the recent weakening in the labor market.

Overall, consumer spending growth does appear to have slowed relative to the second half of last year, but not worryingly so as yet, added CIBC.