Canada’s retail sales drop less than expected in May

Statistics Canada announced on Friday that the Canadian retail sales decreased 2.1 percent m-o-m to CAD53.78 billion in May, following an unrevised 5.7 percent m-o-m plunge in April.

Economists had forecast a 3.0 percent m-o-m decrease for May.

According to the report, sales fell in 8 of 11 subsectors in May, accounting for 65.6 percent of total retail sales, led by lower sales at building material and garden equipment and supplies dealers (-11.3 percent m-o-m), clothing and clothing accessories stores (-11.2 percent m-o-m), furniture and home furnishings stores (-8.7 percent m-o-m) and motor vehicle and parts dealers (-2.4 percent m-o-m). Meanwhile, sales at electronics and appliance stores (+1.5 percent m-o-m), gasoline stations (+0.9 percent m-o-m) and food and beverage stores (+0.8 percent m-o-m) recorded gains.

Core retail sales, which excludes gasoline stations and motor vehicle and parts dealers, fell 2.4 percent m-o-m in May after plunging 7.6 percent m-o-m in the previos month.

In y-o-y terms, Canadian retail sales climbed 24.6 percent in May, following an unrevised 56.7 percent surge in April.