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21/06/24
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Statistics Canada Says Retail Sales Likely Declined Last Month
On June 21, Statistics Canada data showed that retail sales in Canada rose by 0.7 percent in April in line with expectations, ending the decline recorded over the past three months. Core retail sales excluding gasoline stations and fuel vendors, as well as motor vehicle and parts dealers, increased by 1.4 percent in April.
Retail sales rose by 0.5 percent in April, in terms of volume. Gasoline stations and fuel vendors recorded a 4.5 percent increase in retail sales, representing the largest increase and the first time of an increase since March 2024. Gasoline stations and fuel vendors recorded at 1.7 percent uptick in sales volume during the month.
Motor vehicle and parts dealers recorded a 2.2% decline, representing the largest fall in retail sales. Retail sales increased in eight provinces, while the largest provincial increase was observed in Alberta at 3.1 percent and Ontario recorded the largest provincial decline.
According to an advance estimate provided by Statistics Canada, retail sales likely declined by 0.6 percent last month. Canada’s highest interest rates in over 20 years have had a significant effect on the retail sector since the beginning of 2024, thereby denting consumer spending.
Canada’s apex bank delivered its first rate cut in 4 years this month, trimming it by 25 bps to 4.75%. According to money markets, the likelihood of the Bank of Canada to deliver another cut in July is now about 73 percent relative to 71 percent prior to the release of the retail sales data today.
Markets look forward to immediate consumer price index (CPI) data next week to have more clues regarding the cause of the estimated decline in retail sales in May.
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