Canadian retail sales continued their upward trajectory in April, marking the fourth consecutive monthly increase. According to data released by Statistics Canada on Friday, retail trade rose by 0.5 percent, driven primarily by gains at gasoline stations and fuel vendors.
Gasoline Stations Lead the Way
Sales at gasoline stations and fuel vendors surged by 5.1 percent in April, leading the overall retail sales growth. This subsector has been a key driver of the recent positive trend in retail activity.
Motor Vehicle and Parts Dealers Also See Gains
In addition to fuel vendors, motor vehicle and parts dealers posted a 1.7 percent increase in sales during April, rebounding from a 0.1 percent decline in March. New car dealers were primarily responsible for this uptick.
Core Retail Sales Decline
However, when excluding gasoline stations, fuel vendors, and motor vehicle and parts dealers, core retail sales fell by 0.7 percent in April. This marks the second consecutive monthly decline, with lower sales reported at food and beverage retailers and general merchandise retailers.
Volume Sales Unchanged
In volume terms, retail sales remained flat in April following a 0.6 percent decrease in March. This suggests that while nominal sales increased, the volume of goods sold did not grow.
May Estimates Show Continued Growth
Statistics Canada estimates that retail sales rose again in May by 1.0 percent, though this preliminary figure may be revised. The consistent growth over the past four months indicates a positive trend in consumer spending.
The data highlights a mixed retail environment, with strong performance in fuel and automotive sectors contrasting with weakness in other areas. Analysts will be watching closely to see if the trend continues in the coming months.
