MNI DATA BRIEF: Canada Apr Flash Retail -5.1%, Wholesale -0.8%

Canadian April retail sales dropped 5.1% and wholesale sales by 0.8% in flash government estimates published Friday, reflecting new lockdowns in the third wave of the pandemic.

The April retail sales decline was the biggest since December, another time of tough local government tough health restrictions. Statistics Canada didn't break down the weakness by industry for retail, but said wholesale sales were led lower by motor vehicles.

The report adds to evidence that second-quarter GDP growth may slow significantly from the first quarter pace of around 6% annualized. There were signs of resilience, with the March retail sales gain of 3.6% ahead of the market consensus of 2.3% and February sales growth revised up to 5.8% from 4.8%.

Some economists predict that with Canada ramping up vaccinations in recent weeks and the largest provinces of Quebec and Ontario talking about opening up again, the economy could make a comeback in the next few months.