Retail sales in Canada grow above expectations in April

Retail sales in Canada grow above expectations in April and give reason for optimistic forecasts for GDP this month. Retail sales grow by 0.9% mom, while forecasts were for an increase of 0.8%. In March it recorded a decline of 0.8 percent, which was the sharpest contraction than six months. The underlying sales, excluding cars and parts increased by 1.3% in the fourth month of the year amid expectations for 0.7% growth. The good data on retail trade supported the CAD at 15:40 GMT traded 0.5% increase to 1.2754 CAD per USD.

The growth is based on calculations of the value rather than the volume of sales, which limits the potential contribution to monthly GDP data. The main catalyst of growth is more expensive gasoline as fuel stations reported sales growth of 6%. This is the first increase in 10 months. Sales of gasoline are excluded, retail sales grew by only 0.4% in April.

Canadians spent more on furnishings, as sales of these specialty stores grow by 6.1%. The sales of clothing and accessories shrank by 2.7% after three consecutive months of gains.

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