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21.06.2024

Canada’s retail sales rebound in line with expectations in April

The data, published by Statistics Canada on Friday, showed that Canadian retail sales climbed 0.7 per cent m-o-m to CAD66.80 billion in April, following a downwardly revised 0.3 per cent m-o-m drop (from -0.2 per cent m-o-m) in March. This was the first gain in retail sales in four months.

Economists had forecast an advance of 0.7 per cent m-o-m for April.

According to the report, 7 of 9 subsectors demonstrated increases in retail sales in April, driven by gasoline stations and fuel vendors (+4.5 per cent m-o-m) and food and beverage retailers (+1.9 per cent m-o-m). Meanwhile, motor vehicle and parts dealers (-2.2 per cent m-o-m) and building material and garden equipment and supplies dealers (-1.4 per cent m-o-m) showed declines in retail sales in April.

Excluding auto, retail sales surged 1.8 per cent m-o-m in April after a downwardly revised 0.8 per cent m-o-m fall (from -0.6 per cent m-o-m) in the previous month, being much better than economists’ prediction of a 0.7 per cent rise.

In y-o-y terms, Canadian retail sales jumped 1.8 per cent in April, following an unrevised 1.9 per cent soar in the previous month. This represented the strongest annual increase in retail sales since December 2023.

Statistics Canada also announced its preliminary estimates suggest that Canada’s retail sales dropped 0.6 per cent m-o-m in May.

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