Cars, Gas power May Retail Sales
Canadian retail sales jumped 2.2% in May, beating economists’ expectations. Good news right? Well, not really. The gain was driven more by higher prices, especially for gas, than by higher volumes.
Moreover, a preliminary estimate from Statistics Canada suggests weakness to come with sales seen rising just 0.3% in June from the month before, which CIBC economist Katherine Judge says would represent a decline in volumes.
“Indeed, with consumption to shifting towards services, while inflation erodes consumer purchasing power, demand for discretionary goods will be under more pressure ahead,” she wrote.
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