Canada May retail sales +2.2% vs +1.6% expected

• Prior was +0.9% (revised to +0.7%)
• Prelim May estimate from StatCan was +1.6%
• Ex autos +1.9% vs +1.6% expected
• Ex autos and gas +0.6% vs +1.0% prior
• Flash estimate for June +0.3%
• Sales increased in8 of 11 subsectors led by gasoline stations and auto dealers
• Gasoline stations +9.2%
• Retail ecommerce down 23.5% y/y and -2.9% m/m
• Full report

This is a good report and underscores the optimism the Bank of Canada has about ongoing growth in the country, despites some major worries about the housing market. The flash estimate for June shows the consumer holding up as well it what looks like a great quarter from retail, albeit with a big drag from inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term.

In July, sales will likely fall because gas prices are down more than 10%

In terms of the breakdown, there's weakness in building materials but that's still up 5.7% y/y while 'miscellaneous stores' include pet stores, cannabis stores and office supplies and stationery stores.