Data released on Friday showed that retail sales rose 3.6% in April in Canada, beating expectations. Analysts at the National Bank of Canada point out that sales benefit from the health context. They note that consumption may have contributed to growth during the first quarter.
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“Retail sales expanded 3.6% in March, much more than the average economist forecast for a 2.3% progression. In addition to the good news, the previous month’s result was revised from + 4.8% to + 5.8% “.
“Retail sales continued to advance in March, reaching a new all-time high of $ 57.6 billion. As the epidemiological situation improved in the country, more retailers were able to resume their activities. Statistics Canada noted that only 2.1% of stores closed for the month, up from 12% in February. “
“With respect to the quarterly outlook, a small expansion in sales volumes in the first quarter suggests that the consumption of goods could have made a minor contribution to growth in the quarter; we expect an annualized expansion of 6.7% of real GDP in the first trimester”.
“After two strong results in February and March, retail sales appear poised for a sharp contraction in April. An increase in the number of COVID-19 cases in the month forced several provincial governments to tighten the rules of social distancing, something that undoubtedly translated into another attack of weakness in consumer spending. Statistics Canada is marking a 5.1% decline that would still leave retail sales 5.2% above its pre-crisis level. “
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