Canada’s retail sales rose 0.5% mom to CAD 73.0B in April, slightly below expectation of 0.6% mom, and marking a modest recovery in consumer spending. The increase was driven largely by higher sales at gasoline stations and fuel vendors, reflecting elevated fuel prices during the month. Sales increased in five of nine subsectors, suggesting spending gains were reasonably broad-based on the surface.
However, the underlying details painted a softer picture. The largest contribution came from gasoline stations and fuel vendors, where sales surged 5.1% mom. Excluding gasoline, motor vehicles and parts dealers, core retail sales fell -0.7% mom, marking a second consecutive monthly decline. The drop indicates that households were cautious about discretionary spending even as headline retail activity appears resilient.
Looking ahead, there are signs conditions may have improved in May. Statistics Canada’s advance estimate points to a further 1.0% increase in retail sales. If confirmed, that would suggest consumers are continuing to spend despite slowing economic momentum and higher borrowing costs.
Nevertheless, the divergence between headline and core sales remains noteworthy. While fuel-related spending boosted overall retail activity in April, underlying demand trends appear considerably weaker, reinforcing expectations that Canadian consumers remain under pressure.
Canada Retail Sales (April 2026)
| Indicator | Actual | Expected |
|---|---|---|
| Retail Sales M/M | 0.6% | 0.6% |
| Core Retail Sales M/M | -0.7% | – |
| Advance Retail Sales Estimate (May) | 1.0% | – |
Sector Performance
| Category | M/M Change |
|---|---|
| Gasoline Stations & Fuel Vendors | 5.1% |
| Core Retail Sales | -0.7% |
| Retail Subsectors Rising | 5 of 9 |
| Retail Subsectors Falling | 4 of 9 |
