Autos Nudge Canadian Retail Sales Higher in April

(Bloomberg) -- Retail sales in Canada rose in April for a third month on higher receipts at new car dealerships and gasoline stations, though the increase wasn’t as large as expected.

Sales advanced 0.1% in April, Statistics Canada reported Friday in Ottawa. That was less than the 0.2% median forecast in a Bloomberg survey of economists. Excluding autos and parts, sales climbed 0.1%, versus a 0.4% median forecast.

In volume terms sales dropped 0.2%. Friday’s data release was interrupted by a fire alarm at Statistics Canada.

Key Insights

• Friday’s report will be closely watched for signs that indebted consumers are paring back on spending. The Bank of Canada flagged household debt as one of the key vulnerabilities at its latest Financial System Review
• The largest upside contributor to the increase were sales at new car dealers, up 1.2%, and sales at gasoline stations, which rose 1.2%
• On the downside, building materials receipts dropped 2.6%

To contact the reporter on this story: Chris Fournier in Ottawa at cfournier3@bloomberg.net

To contact the editors responsible for this story: Theophilos Argitis at targitis@bloomberg.net, Stephen Wicary

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