Economic news

Canada April Retail Sales Grow 0.5%; Seen Up 1.0% in May

OTTAWA, June 19 (Reuters) - Canada's retail sales grew by 0.5% in April from March to ​C$73.03 billion ($51.6 billion), slightly missing expectations, led primarily ‌by sales at gasoline stations and fuel vendors, Statistics Canada said on Friday.

Retail sales, which include domestic sales of cars, furniture, ​food and gasoline, are considered an early indicator ​of gross domestic product growth and contribute around ⁠40% to total consumer spending.

  • Analysts polled by Reuters ​had forecast retail sales for April to grow by 0.6%.

  • In ​volume terms, retail sales were unchanged in April.

  • Sales at gasoline stations and fuel vendors largely increased due to higher fuel prices, leading ​to a 5.1% increase. In volume terms, however, ​sales of this category were only up by 0.8% in April.

  • Core retail ‌sales, ⁠which exclude gasoline stations and fuel vendors and motor vehicle and parts dealers, were down 0.7% in April. It was the second consecutive month of decline.

  • The decrease ​in core sales ​was led ⁠by lower sales at food and beverage retailers, dropping 2.0%, and general merchandise retailers, ​where sales slipped 1.7%.

  • Sales of motor vehicles ​and ⁠sales at vehicle parts dealers, a category which accounts for over a quarter of total retail sales, grew by ⁠1.7%, data ​showed.

  • Retail sales likely increased by ​1% in May, an advance indicator from StatsCan noted.

($1 = 1.4151 Canadian dollars)

Reporting ​by Promit Mukherjee and Dale Smith; Editing by Toby Chopra

Source: Reuters


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