Statistics Canada reports that retail sales in May increased by 0.2% to $66.0 billion, with new car dealers and grocery stores contributing to the gains.
However, this figure fell short of the agency’s previous estimate of a 0.5% gain for May. The early estimate for June suggests that retail sales for that month remained unchanged, but cautioned that the figure could be revised.
In May, sales at motor vehicle and parts dealers increased by 0.8%, driven by a 0.7% sales gain at new car dealers and a 5.5% increase at other motor vehicle dealers. Sales at food and beverage retailers rose 1.0%, with supermarkets and grocery stores experiencing a 1.4% gain. However, core retail sales, which exclude gas stations, fuel vendors and motor vehicle and parts dealers, remained unchanged in May.
“Retail sales momentum is clearly slowing,” commented Marc Desormeaux, principal economist at Desjardins. “Purchases fell below consensus estimates, and we have now seen weak growth or decline in three of the past four months, with signs of more softness in June.
“The recent 25 basis point interest rate hike by the Bank of Canada will likely weigh on the consumer in July and beyond.”
In terms of volume, retail sales increased by 0.1% for the month. This article includes information from Global News’ Nicole Gibillini.
“Retail sales momentum is clearly slowing,” Marc Desormeaux, principal economist at Desjardins wrote in a note Friday. “Purchases came in below consensus estimates, and we’ve now seen weak growth or outright declines in three of the past four months, with signs of more softness in June.
“Another 25 bp [basis point] interest rate hike earlier this month from the Bank of Canada should weigh on the consumer in July and beyond.”
In volume terms, retail sales rose 0.1% for the month.
With files from Global News’ Nicole GibilliniFollow Google News
