Canadian retail sales rose less than expected in June, as sales increases in appliance and electronics stores were offset by lower receipts at gasoline stations and general merchandisers.
Sales increased 0.1% to $35.9 billion, Statistics Canada said today in Ottawa. Economists surveyed by Bloomberg anticipated a 0.4% rise, according to the median of 16 estimates. Falling prices crimped growth, as sales in volume terms rose 0.9%.
The report supports the Bank of Canada prediction that the economy slowed in the second quarter after growing at a 6.1% pace in the first quarter, the fastest in a decade. The central bank lowered its projection for second-quarter growth last month to a 3% pace from its April forecast of 3.8%, and said there is a risk Canadian consumers will reduce purchases to boost savings.
The next decision by Bank of Canada policy makers, who have raised interest rates twice since June, is on Sept. 8.
The retail sales gain in June was led by a 5.1% rise at electronics and appliance stores and a 2.3% increase for furniture and home furnishing stores. Motor vehicle and parts dealers recorded a 2.1% improvement. Five of the measurement’s 11 components posted gains, the agency said.
Sales at gasoline stations were down 2.7% on lower prices, Statistics Canada also said. Excluding car and parts dealers, retail sales fell 0.5% to $28.1 billion, compared with the 0.1% increase expected by economists surveyed by Bloomberg. Sales excluding the automotive industry and gasoline stations fell 0.1%.
Retail sales in June were 3.8% higher than a year earlier, the report said. It was the smallest annual increase since November.
The statistics agency revised its estimate for May’s retail sales decline to 0.4% from the 0.2% initially reported.
