Updated yesterday at 1:11 p.m.
Rising gasoline prices and sales at new motor vehicle dealers helped push Canadian retail sales up 2.2% in May to $62.2 billion, Statistics Canada said Friday.
The federal agency’s first estimates for the month of June, however, point to a slowdown in the pace of gains for these same sales in June, with preliminary growth of 0.3%.
May’s sales increase was larger than the 1.6% increase suggested by Statistics Canada’s preliminary estimate.
TD Bank economist Ksenia Bushmeneva said retail sales grew at a healthy pace in May, but the details of the agency’s report were not as positive.
“Much of May’s gain was due to higher prices, particularly at the pump, and a recovery in auto sales after three months of declines,” Ms.me Bushmeneva in a report.
Digging deeper into the Statistics Canada document, she observed that a number of categories, such as gasoline, clothing and sporting goods, actually saw their sales decline when adjusting for inflation. .
Statistics Canada said core retail sales – which exclude gas stations and motor vehicle and parts dealers – rose 0.6% in May, while overall retail sales expressed in volume increased. 0.4% during the month.
With inflation at its highest level in decades, rising prices have given nominal retail sales a boost. It is becoming increasingly important to look at spending in real or inflation-adjusted terms.
Ksenia Bushmeneva, economist at TD Bank
Statistics Canada reported that sales increased in eight of the eleven sub-sectors it tracks.
A 12.0% rise in gasoline prices helped push gas station sales up 9.2% in May, but when expressed in volume, gas station sales fell by 2.2%.
Meanwhile, sales at motor vehicle and parts dealers rose 3.3%, boosted by a 3.8% rise at new vehicle dealers – their best performance since February 2021. motor vehicle parts, tires and accessories rose 5.8% and those of other motor vehicle dealers gained 1.1%, while used car dealers saw their sales fall by 1. .6%.
The rise in core retail sales was led by a 1.9% increase in sales at food and beverage stores, while sales at general merchandise stores rose 1.4%.
Statistics Canada said the biggest decline in core retail sales in May was among miscellaneous retailers, with a 6.7% decline. This category includes pet stores, cannabis stores, and office supply and stationery stores.