May retail sales growth aligns with expectations, signaling modest consumption for Q2 amid broad-based gains.
Canadian retail sales increased 1.0% month-on-month in May, matching consensus estimates but slightly trailing TD Securities’ forecast. The rise was driven by higher sales at gasoline stations, auto dealers, general merchandise stores, and sporting goods outlets, reflecting broad-based consumer activity.
The print follows a revised 0.6% decline in April and aligns with expectations for modest second-quarter consumption growth. Analysts had anticipated a 1.0% gain, underscoring steady but unspectacular domestic demand amid economic uncertainty.
The data reinforces expectations for a gradual recovery in consumer spending, though persistent inflation and interest rates may temper momentum in coming months.