Canadian retail sales up 1% at $73.7 billion in May: StatCan
Canadian retail sales rose 1% to $73.7 billion in May as higher gas prices helped boost sales at gasoline stations and fuel vendors, Statistics Canada said Thursday.
The agency also said its early estimate suggested retail sales continued to climb in June with a gain of 0.4%, though it cautioned the figure will be revised.
BMO senior economist Shelly Kaushik said beyond the gas price increase, retail sales were solid in May, with a decent flash estimate for June adding to the encouraging news.
"The economy seemed to be building momentum in Q2, although additional challenges—more tariffs, extreme weather, and the renewed energy price shock—await in the second half of the year," Kaushik wrote in a report.
Statistics Canada said retail sales in May were up in all nine subsectors it tracks, led by gasoline stations and fuel vendors which gained 3.1%. However, in volume terms, sales for gasoline stations and fuel vendors fell 2.7%.
In volume terms, overall retail sales rose 0.3% for May.
Core retail sales, which exclude the more volatile prices at gasoline stations, fuel vendors, and motor vehicle and parts dealers, were up 0.9% for the month.
TD Bank economist Maria Solovieva said the increase in core sales came after two consecutive monthly declines. However, she noted that the durability of the gains were an open question.
"Oil prices have resumed their climb this morning and, while they remain below the highs reached in April, they still represent an incremental tax on household purchasing power, particularly for lower-income consumers," Solovieva wrote in a report.
General merchandise retailers gained 1% for the category's first increase in three months, while sporting goods, hobby, musical instrument, book, and miscellaneous retailers rose 1.8% to also post their first gain in three months.
Sales at food and beverage retailers added 0.5%, helped by a 1% gain at supermarkets and other grocery retailers, except convenience stores.
