Canadian retail sales ticked slightly higher in February, with strong gains in apparel and restaurants, according to the latest Mastercard SpendingPulse.

The analysis measures total in-store and online retail sales (excluding automotive) across all forms of payment, with findings based on aggregate sales activity in the Mastercard payments network, coupled with survey-based estimates for certain other payment forms, such as cash and check.

Mastercard found that total retail sales were up 2.6% year-over-year in February, with apparel growing by 10% and restaurants up 18.7% year. Jewelry and Leather Goods saw a tepid increase of 1.4%.

While spending is continuing to go up, especially in sectors hit hard by the pandemic, Mastercard noted that the rate of growth is beginning to slow.

“Canadian consumers continue to spend but at a decelerating rate,” says Michelle Meyer, North America chief economist, Mastercard Economics Institute. “On the upside, solid spending at restaurants reflects the continued interest in experiences, which are prioritized by Canadian consumers.”

With experiences largely driving spend,projects around the home continue to slow, a trend carrying over from January. Home improvement spending fell 12.1% year over year, with furniture down 4%. Electronics also dipped by 5.1% year over year, though that is smaller than the dip the category experience in January. Meyer says this also reflects the weakening housing market amidst higher interest rates.

In-store sales were up 4.1% at the expense of ecomm, which slipped down 3.1%, following months of strong growth in 2022 and a decline of 11% from January.

“We saw ecommerce soar in the last couple of years, but now Canadians have more flexibility for spending” says Steve Sadove, senior advisor for Mastercard.