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Industry News

Retail sales down for second consecutive month

By Joseph Trigliari

22/07/2010 - In May, Canadian shoppers once again avoided credit card machines and stayed at home, new figures reveal.

For the second consecutive month, retail sales unexpectedly fell. According to Statistics Canada, sales declined by 0.2 percent to $36 billion. Economists had predicted a 0.4-percent increase, Bloomberg reports. Revised figures for sales in April showed a 2.2-percent decline - a reduction from the initial 2 percent reported.

The decline is being attributed to lower sales at building materials and garden equipment stores and gas stations, which showed 4.1 and 2.3 percent decreases, respectively. Motor vehicle and parts dealerships reported a 0.5 percent decline.

In response, Bank of Canada governor Mark Carney revised his expectations for economic growth, telling Bloomberg that any interest rate changes would now be "weighed carefully against domestic and global economic developments."

However, some sectors saw increases, such as clothing and accessories sales, which went up 2.6 percent, and food and beverage sales, which rose 0.9 percent. Additionally, British Columbia recorded a 1.5-percent retail sales increase, CTV News reports.

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