MNI DATA IMPACT: Canada Retail Sales -0.1%, Miss Expectations>

By Jay Zhao-Murray

     OTTAWA (MNI) - Canadian retail sales fell for the first time in 

four months in May, missing market expectations for a moderate gain. 

     The decline was mainly driven by lower food and drink sales, which 

dropped 2% on a month-over-month basis. 

     The median projection for May was a 0.3% bump in total sales, 

according to a survey of economists conducted by MNI. Auto sales rose 

0.5%, with gains to parts and used cars sales offsetting a 0.1% decline 

in new cars. Excluding autos and gas, retail sales fell 1% in May, the 

fastest decrease since January 2018. 

     The fall in sales was narrowly-based, with 4 of 11 subsectors 

representing 39% of retail trade posting declines. 

     Sales fell 0.5% after removing the effects of price changes, 

suggesting an even bigger drag on the economy in May from retailing. 

     Sales at gas stations surged 3.5% on the month, Statistics Canada 

said from Ottawa on Friday. This was the fourth monthly increase in a 

row. 

     May's sales figures may cast doubt on projections released in the 

Bank of Canada's most recent Monetary Policy Report, which stated that 

consumers would be the primary engine of growth in 2019. The 

Bank forecasted a 1.2% contribution from consumer spending to annual 

real GDP growth, and 1.3% year-over-year rise in real GDP in the 

second quarter of 2019.

--MNI Ottawa Bureau; tel: +1 613-883-0774; 

jay.zhaomurray.ext@marketnews.com