Retail Sales Weak in April

| Source: The Conference Board of Canada The Conference Board of Canada

Ottawa, ON, June 21, 2019 (GLOBE NEWSWIRE) -- The Conference Board of Canada’s Senior Economist Constantinos Bougas offers the following insights on today's release of data on retail trade:

“Today’s Statistics Canada release showed retail sales edging up a mere 0.1 per cent in April. This followed strong back-to-back gains in February and March, so a slowdown was not surprising. The picture is less encouraging when taking into account the effects of price changes, as sales in volume terms fell 0.2 per cent in April. In fact, sales volumes have been soft for about 2 years, up only 1.2 per cent since April 2017. But with the Bank of Canada expected to stay on the sidelines the rest of this year, and with employment and wage growth posting solid gains in recent months, retail spending should pick up over the rest of 2019.”

Insights:

  • Retail sales increased for a third consecutive month in April, but the increase was limited to 0.1 per cent.
  • Retail sales fell 0.1 per cent when excluding sales at motor vehicle motor vehicle and parts dealers and gasoline stations.
  • Sales at cannabis stores continues to post impressive growth; they were up 22.5 per cent on the month in April and are up 80.1 per cent since this category started being tracked last October.
  • Year-over-year gains were stronger, with retail sales increasing by 3.7 per cent.
  • After adjusting for inflation, retail sales volumes decreased by 0.2 per cent.
  • Retail sales increased strongly in Toronto and Montreal year-over-year. Retail sales in Toronto rose by 8.5 per cent, while they rose by 6.7 per cent in Montreal.
  • On the other hand, retail sales declined by 4.4 per cent in Vancouver.
  • Overall, the Conference Board expects retail sales in Toronto and Vancouver to increase at a stronger pace in 2019 than in 2018.
  • Despite strong gains year-over-year in April, slower job growth and softer real after-tax income gains should cool retail sales growth in Montreal in 2019.

Content Attribution: 

Constantinos Bougas, Senior Economist

The Conference Board of Canada 

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The Conference Board of Canada is the country’s leading independent research organization. Our mission is to empower and inspire leaders to build a stronger future for all Canadians through our trusted research and unparalleled connections. Follow The Conference Board of Canada on Twitter.

Media Contact: 

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