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CAD Core Retail Sales m/m, Jan 23, 2026

Canadian Shoppers Opened Their Wallets in December: Core Retail Sales Surge Boosts Economic Outlook

Are you wondering what's really going on with Canada's economy and how it might be impacting your wallet? The latest economic data released on January 23, 2026, offers a bright glimmer of hope. Canada's Core Retail Sales m/m (which we'll break down in a moment) showed a significant jump, painting a much rosier picture of consumer spending than economists had predicted. This CAD Core Retail Sales m/m data is a crucial piece of the puzzle for understanding the health of the Canadian economy and what it means for everyday Canadians.

The headline numbers from this January 23, 2026, release are truly impressive. Core Retail Sales m/m, a key measure of consumer spending, surged to an actual 1.7% for December. This significantly outpaced the forecast of 1.0% and is a dramatic turnaround from the previous month's dip of -0.6%. This isn't just a small bump; it's a strong signal that Canadians were actively buying goods and services in the final month of the year. This robust CAD Core Retail Sales m/m report Jan 23, 2026 suggests resilience in consumer confidence.

Decoding Core Retail Sales: What Does It Actually Mean?

So, what exactly are "Core Retail Sales m/m"? This economic indicator, often referred to as Retail Sales Ex Autos, is a vital metric released by Statistics Canada. It measures the change in the total value of goods sold by retailers across the country, but with one important exclusion: automobiles.

Why exclude cars? Well, car sales can be extremely volatile. They represent a big-ticket purchase that can fluctuate wildly month-to-month due to factors like new model releases, economic uncertainty, or even interest rate changes on car loans. By removing automobiles, which typically account for about 20% of overall retail sales, economists get a clearer picture of the underlying spending trends of the average Canadian household. In essence, Core Retail Sales m/m gives us a more stable and reliable gauge of how much money people are spending on everyday items and services.

What This Means for Your Household: More Than Just Shopping

This surge in CAD Core Retail Sales m/m is more than just a statistic; it has tangible implications for your daily life. A stronger performance in Core Retail Sales suggests that consumers are feeling more confident about their financial situations. This confidence often translates into increased spending on a variety of goods, from groceries and clothing to electronics and home furnishings.

Think of it this way: when retailers see strong sales, they are more likely to keep their shelves stocked and potentially even expand their operations. This can lead to a healthier job market, with businesses hiring more staff to meet demand. For individuals, this could mean more job opportunities or greater job security in their current roles.

Furthermore, this kind of positive economic data can influence interest rates. If the economy is showing signs of robust growth, central banks might consider keeping interest rates steady or even increasing them in the future to manage inflation. This is something many homeowners with variable mortgages are closely watching.

Currency Watch: The Canadian Dollar's Reaction

For those who follow currency markets, this positive CAD Core Retail Sales m/m data is noteworthy. The general rule of thumb for currency markets is that when a country's economic data comes in stronger than expected, its currency tends to appreciate. This is because strong economic performance often attracts foreign investment, increasing demand for the country's currency.

In this case, the actual 1.7% for CAD Core Retail Sales m/m was significantly better than the forecast of 1.0%. This outperformance typically signals good news for the Canadian dollar (CAD). Traders and investors closely monitor these releases for signs of economic strength. A stronger CAD can make imported goods cheaper for Canadians, but it can also make Canadian exports more expensive for other countries. This latest CAD Core Retail Sales m/m report Jan 23, 2026, therefore, likely caused some positive ripples in foreign exchange markets.

What's Next for Canada's Economy?

The strong CAD Core Retail Sales m/m figures for December are a welcome sign of economic resilience. It suggests that despite potential headwinds, Canadian consumers are still willing and able to spend, which is a critical driver of economic growth. This CAD Core Retail Sales m/m data provides a valuable snapshot, but it's important to remember that economic trends unfold over time.

As we look ahead to the next release on February 20, 2026, all eyes will be on whether this positive momentum continues. The market will be keen to see if this surge in spending was a one-off boost or the beginning of a sustained upward trend. This monthly report, along with other economic indicators, will continue to shape our understanding of Canada's economic trajectory.

Key Takeaways:

  • Headline Numbers: Canada's Core Retail Sales m/m for December 2025 surged to 1.7%, significantly beating the 1.0% forecast and reversing the previous month's decline.
  • What it Measures: This data, also known as Retail Sales Ex Autos, tracks consumer spending on everyday items by excluding volatile car sales, offering a clearer view of spending trends.
  • Real-World Impact: Stronger sales can indicate increased consumer confidence, potentially leading to job growth and influencing interest rate decisions.
  • Currency Effect: The better-than-expected CAD Core Retail Sales m/m data is generally positive for the Canadian dollar.
  • Looking Ahead: The next release on February 20, 2026, will be crucial to see if this positive trend continues.