MNI: Canada June Retails Fall And May Biggest Drop In A Year

Canadian retail sales fell in May and June, pulling the advance quarter-over-quarter figure to -0.3% and continuing the relatively flat two-year long trend. 

Statistics Canada's flash estimate for June says retail sales fell 0.3%, and while it didn't come with an industry breakdown, May retails declined 0.8% with decreases in every category except motor vehicle and parts dealers which increased 0.8%. 

Excluding motor vehicles and parts, retails decreased by 1.3%. Food and beverage receipts were the largest contributor to the May drop, falling 1.9%. Economists expected total sales to fall 0.6% and sales excluding autos to decrease 0.5%. 

After removing price changes, the volume of sales decreased 0.7%. That measure is a closer indication of the contribution to gross domestic product.

Removing an increase in April, retail sales have decreased every month so far in 2024. May sales were still up 1% year-over-year. 

The Bank of Canada is expected to cut interest-rates for the second time at the July 24th decision as it sees inflation slowing back to target and the emergence of slack in the economy.