MNI: Canada May Retails Fall After Only Rise This Yr In April
Canadian retail sales fell 0.6% in May according to a Statistics Canada flash estimate Friday after posting the only increase this year in April.
While May's advance figure didn't come with an industry breakdown, sales grew 0.7% in April in line with consensus expectations. April's increase was broad-based with seven of nine sub-sectors rising. Gasoline station sales grew 4.5% on higher prices, and food and beverage retailers gained 1.9% in April.
Declines in motor vehicles and parts partially offset the April increase, falling 2.2%. Sales excluding motor vehicles rose 1.8% to triple economist forecasts.
After removing price changes the volume of sales rose 0.5% in April. That measure is a closer indication of the contribution to gross domestic product.
The Bank of Canada cut interest rates from their highest level since 2001 in June on signs inflation is slowing back to target and the emergence of slack in the economy. The Bank says more rate cuts may be justified because monetary policy is tight.