Canada’s retail sales rose 0.3% mom in April to CAD 70.1B, falling short of market expectations of a 0.5% mom rise. Growth was supported by increases in six of nine subsectors, particularly in motor vehicle and parts dealers. However, sales excluding autos and fuel—rose just 0.1% mom. In volume terms, sales rose a healthier 0.5%, but the strength may not carry forward. Statistics Canada’s advance estimate for May suggests a -1.1% mom decline.
Trade tensions between Canada and the US are emerging as a key drag on the retail sector. Statistics Canada reported that 36% of retail businesses were affected in April, citing price increases, shifting demand, and supply chain disruptions. While most subsectors recorded sales growth, all nine reported some degree of negative impact.
