OTTAWA (Reuters) -Canada’s retail sales in May fell more than expected as consumers spent less at supermarkets and grocery retailers, data showed on Friday, amid persistent food inflation and high interest rates.
Retail sales, which comprise motor vehicles, clothing, furniture, food and beverages among others, dropped by 0.8% in May on a monthly basis, reversing a 0.6% rise in April, Statistics Canada said.
June’s retail numbers, which survey only half of the respondents for a preliminary estimate, showed that sales likely dropped by 0.3%, a flash estimate by Statistics Canada said.
Analysts had forecast that sales would likely drop by 0.6% in May, and had estimated sales excluding automotive and parts would drop by 0.5%.
Retail sales excluding those at motor vehicle and parts dealers, which accounts for over a quarter of total sales, slumped by 1.3%, Statscan said.
Sales at food and beverage retailers, which contribute almost a fifth of total sales, were down 1.9% led by a sharp drop in purchases at supermarket and grocery retailers, it said.
May retail sales totaled C$66.13 billion ($48.20 billion) and saw a drop across eight out of nine sub sectors.
($1 = 1.3720 Canadian dollars)
(Reporting by Dale Smith and Promit Mukherjee in OttawaEditing by Nick Zieminski)
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