Toronto, Ontario -- The automotive retail sector experienced an unexpected rebound in March, Statistics Canada has found in a new report.
During the month, sales at motor vehicle and parts dealers increasing by 4.8 percent compared to February. This surge marked the first rise in three months and was a significant contributor to the overall 0.8 percent growth in national retail sales during the same period.
While the news is being welcomed by members of Canada's collision industry, it isn't clear that further growth should be expected. The uptick in automotive sales is being attributed to consumers expediting vehicle purchases ahead of anticipated U.S. tariffs, which came into effect in April.
This pre-emptive buying behavior may suggest markets will experience severe turbulence in in April and May. Turbulence that is likely to be felt in other areas of the Canadian economy as well.
In a recent press release, Bank of Canada Governor Tiff Macklem cautioned that second-quarter growth in the Canadian economy might be weak if tariff uncertainties persist.
