MNI 5 THINGS:Canada Retail Sales Disappoint;Bad Weather Weighs>

By Yali N'Diaye

     OTTAWA (MNI) - The following are the key points from the April data 

on Canadian retail sales released Friday by Statistics Canada:

     - BELOW EXPECTED 

     Retail sales fell 1.2% in April, a disappointing performance given 

that analysts in a MNI survey had expected sales to remain flat. The 0.2 

percentage point upward revision to the March estimate, now at a 0.8% 

increase, was a small consolation. On a 12-month basis, sales growth 

slowed to 1.6% in April, the smallest increase since January 2015. 

Adding to the weakness of the report was the fact that April's decline 

was led by lower volumes. Real sales were down 1.4% on the month, more 

than erasing the previous month's increase of 1.0%. 

     -WIDESPREAD DECLINES 

     Declines were widespread: sales contracted in eight of 11 

subsectors representing 65% of retail trade. Decreases were also 

widespread regionally. Six provinces recorded lower sales, led by 

Ontario, where sales fell 2.3%, the largest decline since January 2015. 

Excluding Ontario, sales were still down 0.6% on the month. 

     -AUTO WEAKNESS 

     As expected, auto sales led the decrease in April, posting a 4.3% 

drop on the month on weaker volumes (-4.4%). Excluding autos and parts, 

sales edged down 0.1% on the month after being flat the two previous 

months. Analysts had expected a 0.4% gain. Weak performers also included 

housing-related building material and garden equipment and supplies, 

with sales down 3.3%, the largest drop since December 2013, owing to 

weaker volumes (-3.5%). 

     -GAS PRICE BOOST 

     Electronic and appliance sales (+1.6%), food and beverages (+2.3%) 

and gas station sales (+1.4%), were the only three categories to post 

gains. While gains were supported by higher volumes for the first two 

subsectors, gas station receipts were entirely price related, as volumes 

edged down 0.1%. 

     -UNDER THE WEATHER 

     The weather could have had a larger impact than expected. In 

Ontario, in particular, the largest contributor to auto sales, 

temperatures were cooler than usual, with freezing rain in the middle of 

the month. Elsewhere as well, "inclement weather in many parts of Canada 

may have contributed to the overall decline in April," the report said. 

--MNI Ottawa Bureau; email: yali.ndiaye@marketnews.com 

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