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08:38 AM EDT, 07/22/2022 (MT Newswires) -- Retail sales increased 2.2% to $62.2 billion in May, recording the fifth consecutive increase, Statistics Canada said Friday. This easily beat forecasts for a rise of 1.6% According to StatsCan, sales were up in 8 of 11 subsectors, representing 86.8% of retail trade. Sales were led by higher sales at gasoline stations and motor vehicle and parts dealers. Core retail sales -- which exclude gasoline stations and motor vehicle and parts dealers -- increased 0.6%. In volume terms, retail sales were up 0.4% in May. Given the continually evolving economic situation, Statistics Canada is providing an advance estimate of retail sales, which suggests that sales increased 0.3% in June. Owing to its early nature, StatsCan said this figure will be revised. It added this unofficial estimate was calculated based on responses received from 42.3% of companies surveyed. The average final response rate for the survey over the previous 12 months has been 91.7%. Breaking down the StatsCan data, leading the increase in retail sales in May were higher sales at gasoline stations (+9.2%), which recorded its fifth consecutive increase. In volume terms, sales at gasoline stations decreased 2.2%. Gasoline prices rose 12.0% on an unadjusted basis in May, posting their largest monthly increase since May 2020. Sales at motor vehicle and parts dealers were up 3.3% in May following three months of declines. The increase was largely the result of higher sales at new car dealers (+3.8%), which recorded its fastest pace of growth since February 2021. The gains at this store type were on the heels of greater manufacturing activity of passenger cars and light trucks in March and April, as North American automakers experienced a reprieve from supply chain issues that impacted output for a number of months. Higher sales were also reported at automotive parts, accessories and tire stores (+5.8%) and other motor vehicle dealers (+1.1%). In contrast, used car dealers (-1.6%) were the only store type in this subsector to decline. In terms of core retail sales, they were up 0.6% in May. Leading the increase were higher sales at food and beverage stores (+1.9%). The Consumer Price Index noted that food prices remained elevated in May, up 9.7% from the same month the previous year. Increases in input costs and supply chain disruptions continued to put upward pressure on prices. Sales were also up at general merchandise stores (+1.4%) in May. This was the 10th increase in the last 12 months. The largest decline to core retail sales in May came from miscellaneous store retailers (-6.7%), following gains in April. Stores in this subsector include pet stores, cannabis stores and office supplies and stationery stores. Receipts at building material and garden equipment and supplies dealers were down for a second consecutive month (-1.7%). Despite the decline in May, activity in this category remains high, with sales up 5.7% from May 2021. Among other highlights, retail sales increased in all provinces in May, led by higher sales in Quebec (+3.4%). In the census metropolitan area (CMA) of Montreal, sales rose 2.7%. Higher sales were observed in Ontario (+1.9%) on the strength of higher sales at gasoline stations. Sales increased 0.6% in the CMA of Toronto. Sales were up in Alberta (+1.9%) and Manitoba (+4.9%), both of which were led by higher sales at new car dealers. And sales increased 1.3% in British Columbia, led by higher sales at gasoline stations. Sales were up 0.8% in the CMA of Vancouver. |