(June 19): Canadian retail sales continue to rise in the second quarter (2Q), lifted by surging gasoline prices that are crowding out many other spending categories.
An advance estimate suggests receipts for retailers rose 1% in May, following a 0.5% increase the previous month, Statistics Canada reported on Friday. The April figure was slightly lower than the median projection of 0.6% in a Bloomberg survey of economists.
The data point to a 1.9% expansion in 2Q assuming June is flat. That would mark an eighth consecutive quarterly increase, following 2.1% growth in the first three months of the year. But the report suggests higher gas prices are playing a major role in recent strength.
The statistics agency didn’t provide details for the May estimate, which is based on responses from 52.1% of companies surveyed. In April, however, retail sales were flat excluding gasoline. They were also unchanged in volume terms.
On a nominal basis, sales rose in five of nine sectors that month, led by a 5.1% increase at gas stations and fuel vendors. In volume terms, sales in this sector were up 0.8%.
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Core retail sales, which exclude gas stations and car dealers, fell 0.7%, posting a second straight monthly decline. Sales at food and beverage retailers fell 2%, while general merchandise retailers dropped 1.7%.
Still, consumers showed some signs of resilience in April. Sales at motor vehicle and parts dealers jumped 1.7% after declining the previous month.
Excluding autos, retail sales rose 0.1%, lower than the median estimate of 0.8%.
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Building material and garden equipment and supplies dealers saw the largest increase in core retail sales with a 3.3% boost after decreasing in March.
Sales rose in six of 10 provinces. The largest increase in dollar terms was seen in the most-populous province of Ontario, led by higher sales at motor vehicle and parts dealers.
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