Retail sales in Canada climbed in April, boosted by higher prices at the gas pump, Statistics Canada said Wednesday.
The agency said retail sales rose 0.9% to $44.3 billion in April, in line with the expectations of economists surveyed by Thomson Reuters and reversing a drop of 0.8% in March.
However, excluding sales at gasoline stations, which climbed 6.0%, retail sales were up just 0.4% for the month.
Bank of Montreal senior economist Benjamin Reitzes noted that volumes rose just 0.1% as prices were meaningfully higher in the month.
“With the manufacturing and wholesale data already in hand, April GDP looks to be on track for a 0.1% to 0.2% increase,” Reitzes wrote in a note to clients.
“While that’s a decent start to the second quarter, recall that the (Alberta) wildfires are going to weigh very heavily on May GDP and, in turn, the quarter.”
Retail sales were up in seven of 11 subsectors.
In addition to the gain at gasoline filling stations, sales at furniture and home furnishings stores climbed 6.1%.
Sales at general merchandise stores gained 1.3%.
Meanwhile, sales at clothing and clothing accessories stores dropped 2.7% and motor vehicle and parts dealers sales fell 0.3%.
CIBC economist Nick Exarhos noted the drop in auto sales was a slight disappointment.
“Still, car lot spending has been an area of particular strength over the past year, with new car dealers reporting a greater than eight per cent year-on-year advance,” Exarhos said.
“However, we don’t think there’s much room to head higher from here. Spending on big ticket items is vulnerable to a replenishing of savings, with the savings rate edging to a slim 3.9% in the first quarter.”
Retail sales increased in every province, except Manitoba where they fell 0.9% due to lower sales at new car dealers.
British Columbia gained 2.4% as it posted the largest increase in dollar terms, while Alberta climbed 2.0%, the first increase in five months.
Ontario gained 0.4% and Quebec edged up 0.1%.