May’s 1.0% month-on-month gain in Canadian retail sales signals modest Q2 consumption growth despite softer real volumes.
Canadian retail sales increased 1.0% month-on-month in May, aligning with consensus estimates but slightly below TD Securities’ 1.1% forecast. Gasoline stations led gains with a 3.1% rise, while autos, general merchandise, and sporting goods also contributed to broad-based growth across all nine subcomponents.
Real sales volumes grew 0.4%, supporting expectations for a modest increase in Q2 goods consumption. Flash data for June suggests nominal spending rose another 0.4%, even as lower gasoline prices weighed on overall figures.
The report highlights resilience in consumer spending, though softer volume growth tempers expectations for a stronger rebound in economic activity.