Canadian Retail Sales Climb 0.7% in April

Statistics Canada reports that retail sales in April increased by 0.7%, reaching a total of $66.8 billion. This growth was primarily driven by higher sales at gasoline stations and food and beverage retailers.

Key Insights from the Report:

• Gasoline Stations and Fuel Vendors: Sales surged by 4.5%, significantly contributing to the overall retail sales increase.
• Food and Beverage Retailers: This sector saw a 1.9% rise in sales, reflecting strong consumer demand.
• Motor Vehicle and Parts Dealers: Contrarily, this sector experienced a decline, with sales dropping by 2.2%. New car dealers were particularly affected, with a 2.9% decrease in sales.

Core retail sales, which exclude the volatile sectors of gasoline stations, fuel vendors, and motor vehicle and parts dealers, rose by 1.4% in April. In terms of volume, retail sales increased by 0.5%.

Despite the positive performance in April, Statistics Canada’s advance estimate suggests a potential 0.6% decline in retail sales for May. However, the agency cautioned that this preliminary figure is subject to revision.

April’s retail sales data indicates robust growth in the Canadian retail sector, particularly in gasoline and food sales, despite challenges faced by the automotive sector. The anticipated decline in May underscores the importance of closely monitoring retail trends to gauge ongoing consumer confidence and economic health.