Canadian Retail Sales Declined 0.7% in March; Consumer Growth Momentum Weakening

According to Caixin Macro analyst Bradley Saunders on May 22, Canadian retail sales fell 0.7% month-over-month in March, less severe than expected, but other indicators suggest household consumption's strong start to the year has stalled. On a nominal basis, March retail sales grew 0.9%, beating the prior forecast of 0.6%, while preliminary data showed April sales rose 0.6%.

Saunders noted that a 5% increase in gasoline prices likely accounted for nearly all of April's sales growth, suggesting that actual retail volumes remained broadly flat for the month.