Canada Retail Sales Rise 1.0% in May; June Seen Up 0.4%

Canada’s retail sales rose 1.0% month on month to CAD 73.7 billion in May, with gains across all nine subsectors tracked by Statistics Canada. Gasoline stations and fuel vendors led the increase, up 3.1% in value terms, though volumes there fell 2.7% as higher prices drove the nominal gain. Motor vehicle and parts dealers added 0.7%, extending a second straight monthly rise.

Excluding gasoline and auto categories, core retail sales advanced 0.9%, a sign the spending base was broad. Overall retail sales volumes, which strip out price effects, rose 0.3%.

Statistics Canada’s advance estimate for June pointed to a further 0.4% increase, suggesting consumer spending carried momentum into the end of the second quarter.