Canadian retail gross sales edged up 0.3% in April, Statistics Canada reported Friday, with good points in auto gross sales and on-line buying serving to push whole gross sales previous $70 billion. However the enhance, unfold throughout simply six of 9 sectors, got here in barely beneath forecasts.
The strongest good points got here from motorized vehicle and components sellers (+1.9%), sporting items, interest, musical instrument and miscellaneous retailers (+1.0%) and residential furnishings, electronics and home equipment retailers (+0.4%).
Notable decreases for April have been recorded at gasoline stations and gas distributors (-2.7%) and clothes, clothes equipment, footwear, jewellery, baggage and leather-based items retailers (-2.2%).
Core retail gross sales—which exclude gasoline stations and motorized vehicle and components sellers—edged up simply 0.1% in April, down from a 0.2% achieve the month earlier than. Nonetheless, in quantity phrases, retail gross sales jumped 0.9%, pointing to stronger underlying demand.
Regionally, retail gross sales rose in simply 5 provinces, with Saskatchewan (+2.0%) and British Columbia (+1.7%) posting the strongest good points. New Brunswick noticed the steepest decline, down 3.1% in April, largely as a consequence of weaker motorized vehicle and components gross sales.
On-line buying additionally recorded a wholesome enhance for April, growing 3.2% to $4.4 billion, representing 6.2% of Canada’s whole retail commerce.
Commerce considerations forged shadow over second-quarter outlook
Although April’s knowledge factors to a rebound in client spending—pushed largely by early auto purchases forward of anticipated worth hikes—indicators of a pullback are already rising. StatCan’s flash estimate for Might suggests a pointy 1.1% decline, as auto gross sales retreat and client sentiment turns extra cautious.
“Wanting via the tariff- and gasoline price-driven swings, the retail gross sales report factors to slowing client spending via the spring,” wrote BMO’s Shelly Kaushik. “The weak flash estimate for Might, even when largely auto-driven, is in step with our view that the economic system struggled within the second quarter.”
Economists anticipate client spending to weaken within the coming months, with 36% of outlets reporting trade-related impacts in April, together with worth will increase, shifting demand and provide chain disruptions.
These tariff-related considerations had a noticeable affect, with all 9 retail subsectors reporting destructive results on gross sales—even amongst those who posted total month-to-month good points, StatCan stated.
TD Economics’ Maria Solovieva additionally flagged weakening client exercise, pointing to TD’s inner credit score and debit card knowledge, which confirmed a transparent pullback in spending via Might.
“The advance estimate units a somber tone for the second quarter,” she wrote. “As well as, our inner credit score and debit card spending knowledge exhibits a significant softening in spending via Might, suggesting that buyers tightened their purse strings.
Solovieva added that TD now expects actual private consumption to be flat in Q2, with a possible contraction in Q3 if U.S. tariffs proceed to weigh on sentiment and job prospects.
Nationwide Financial institution economist Daren King additionally sees retail gross sales weakening within the months forward, although he factors to extra elements, together with the affect of wildfires throughout the nation. He famous that the Liberals’ proposed summer season tax lower may assist “soften the blow,” however underlying considerations stay.
“Consequently, a slowdown in consumption stays our base situation for the approaching months,” he stated.
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Final modified: June 20, 2025
