By Ketki Saxena
Investing.com -- Canadian retail sales grew 2.2% in May, Statistics Canada announced this morning, beating economist expectations for a 1.6% increase to C$62.2 billion in May.
Today’s reading marked a substantial increase from April’s 0.7% gain, and beat economist expectations for a 1.6%. gain, indicating - thus far- resilience in consumer spending even amidst sharply rising rates.
Sales were up in 8 of 11 subsectors, representing 86.8% of retail trade, led by increased sales at gasoline stations and motor vehicle and parts dealers.
In volume terms, retail sales were up 0.4% in May.
Sales rose in every province, with gains led by Quebec.
However, the agency also said it expects to see sales slow in June, with a preliminary estimate indicating growth of 0.3% for the month.
Analysts at the National Bank of Canada (TSX:NA) note that “There could be a reduction in spending in other sectors as consumers deal with higher prices and rising interest rates. Hopefully, these headwinds are compensated by a strong labour market and a still high savings rate.”