Canadian retail sales increased 1.0 percent to $73.7 billion in May, with higher spending at gasoline stations and fuel vendors, as well as motor vehicle and parts dealers, leading gains across the retail sector.
All nine retail subsectors reported higher sales during the month. Excluding gasoline stations and fuel vendors, and motor vehicle and parts dealers, core retail sales rose 0.9 percent after declining 0.7 percent in April.
Adjusted for price changes, retail sales volumes increased 0.3 percent, indicating that part of the overall increase reflected higher prices rather than stronger purchasing activity.
Gasoline stations and fuel vendors posted the largest monthly increase, with sales rising 3.1 percent. The increase was driven by higher dollar sales even though fuel volumes declined 2.7 percent during the month.
Sales at motor vehicle and parts dealers climbed 0.7 percent, marking a second straight monthly increase. All four store types within the subsector recorded gains, led by new car dealers, where sales increased 0.5 percent.
General merchandise retailers rebounded after two months of declines, with sales up 1.0 percent. Sporting goods, hobby, musical instrument, book and miscellaneous retailers also returned to growth, posting a 1.8 percent increase following two consecutive monthly declines.
Food and beverage retailers reported a 0.5 percent increase. Supermarkets and other grocery retailers, excluding convenience stores, led the advance with sales rising 1.0 percent.
Retail sales increased in nine provinces. British Columbia recorded the largest gain in dollar terms, up 2.1 percent, supported by stronger sales at motor vehicle and parts dealers. Retail sales in the Vancouver census metropolitan area rose 3.4 percent.
Ontario posted a 0.5 percent increase, helped by higher sales at gasoline stations and fuel vendors. Sales in the Toronto metropolitan area rose 0.8 percent.
Nova Scotia was the only province to record a decline. Retail sales there fell 0.8 percent, largely because of weaker sales at motor vehicle and parts dealers.
Online retail activity moved lower in May. Seasonally adjusted retail e-commerce sales fell 1.5 percent to $5.0 billion, representing 6.8 percent of total retail trade, down from 7.0 percent in April.
A preliminary estimate points to further growth in June. The advance indicator suggests retail sales increased 0.4 percent, although the estimate is based on responses from 55.1 percent of surveyed businesses and will be revised as additional data become available.