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Investing.com -- Retail sales in Canada rose 0.3% to $70.1 billion in April, driven largely by gains in the motor vehicle and parts subsector, according to data released Friday by Statistics Canada. Sales increased in six of nine subsectors, while retail e-commerce climbed 3.6%.
The rebound also translated into a 0.5% gain in volume terms, suggesting stronger real activity. Still, retailers reported mounting pressure from Canada/U.S. trade tensions, with 36% citing issues such as higher prices, supply chain disruptions, and weaker demand.
Motor vehicle and parts dealers led the monthly increase, up 1.9%, as both new and used car sales posted gains exceeding 2%. By contrast, sales at gasoline stations fell 2.7%, although volume-adjusted figures rose slightly by 0.4%.
Core retail sales—which exclude autos and gasoline—edged up just 0.1%, pointing to subdued discretionary spending. The biggest drag came from clothing and accessory stores, down 2.2%, offsetting modest gains in sporting goods, electronics, and grocery categories.
Regionally, five of ten provinces posted growth. British Columbia led with a 1.7% increase, bolstered by strong auto sales in the Vancouver area. Ontario rose 0.2% overall, though Toronto saw a stronger 2.7% gain. New Brunswick recorded the steepest drop at 3.1%, weighed down by auto-related weakness.
Despite April’s improvement, preliminary data for May suggest a potential pullback. Early estimates point to a 1.1% decline in retail sales, based on 53.8% of survey responses. While subject to revision, the data signal a soft start to the summer for Canada’s retail sector.