Retail sales likely dropped in May — Statistics Canada

According to a Friday report from Statistics Canada, retail sales in April increased by 0.3% to 70.11 billion Canadian dollars ($50.94 billion). Gains were recorded in six of the nine subsectors. However, the agency's advance estimate suggests this figure might have declined by 1.1% in May.

Although Canadian retail sales rose month-over-month at the start of the second quarter, they fell short of expert forecasts. According to Reuters, the main reason for this is the continuation of trends from previous months, when shoppers front-loaded purchases to avoid the impact of incoming US tariffs.

In accordance with Andrew Grantham, senior economist at CIBC Capital Markets, these shifts signal a potential slowdown in the country's economy in the second quarter.

The largest sales increase in April (+1.9%) was recorded in the automotive sector and parts dealers segment, driven primarily by sales of new and used vehicles. Meanwhile, declines were observed at gasoline stations and clothing stores, where sales volumes decreased by 2.7% and 2.2%, respectively.