By Promit Mukherjee
OTTAWA, August 21 (Reuters) – Canada’s retail sales rose 0.6% in June, beating an average analyst expectation of 0.4%, as sales jumped at clothing and general merchandise stores, data showed on Friday.
Retail sales, which include purchases of cars, furniture, food and gasoline, are considered an early indicator of gross domestic product growth and account for about 40% of consumer spending.
• Sales rose to C$74.28 billion ($54.08 billion) in June from C$73.84 billion in the prior month, Statistics Canada said.
• However sales are likely to decrease by 0.8% in July, the federal statistics agency said in an advance estimate.
• June sales increased across seven out of nine subsectors. In volume terms, retail sales increased 1.5% in June.
• The biggest increases were recorded in the clothing, clothing accessories, shoes, jewelry, luggage and leather goods retailers category, which posted a jump of 3.1%, although its sales numbers contributed only 5.6% to the overall sales figure.
• Among big-ticket items, sales at general merchandise retailers, which account for more than 15% of total retail sales, surged by 2.7%, StatsCan said.
• Sales at motor vehicle and parts dealers, the largest subsector and accounting for roughly 27% of retail sales, rose 1%, following a 0.7% increase in May. This was its third consecutive monthly increase.
• Purchases at food and beverage retailers, the second-biggest category, dropped 0.4% as consumers shopped less at supermarket and grocery retailers, data showed.
• The largest decrease was observed at gasoline stations and fuel vendors (-4.1%), which posted their first decline in four months, primarily due to lower gasoline prices.
• “Through the monthly volatility we still see a gradual improvement in consumer spending, which should continue into next year, supported by expanded household benefits and an improving labor market,” said Andrew Grantham, senior economist at CIBC Capital Markets.
($1 = 1.3736 Canadian dollars)
(Reporting by Promit Mukherjee and Dale Smith; Editing by David Holmes)
Comments