New cars, trucks help drive increase in retail sales

Alberta’s retail sales edged higher in May to $ 6.34 billion, up 0.4 per cent from April but down 1.7 per cent from $ 6.45 billion in May of last year, Statistics Canada said Thursday.

The province’s month-over-month growth, linked to higher sales at electronics, appliance and grocery stores, lagged the national monthly boost of 1.0 per cent to $ 43 billion, the third increase in four months, driven by sales of new cars and trucks.

The rise in retail sales was better than the 0.5 per cent increase that had been expected by economists, according to Thomson Reuters.

“While not a big upside surprise, the mildly encouraging retail results break a run of sour news for the Canadian economy,” BMO chief economist Doug Porter wrote in a commentary.

“The decent result also plays up the fact that the consumer is still doing its job — now the economy needs some serious help from nonresource exports.”

Retail sales were up in nine of 11 subsectors, representing 92 per cent of retail trade.

In volume terms, Statistics Canada says sales were up 0.4 per cent after removing the effects of price changes.

Sales at motor vehicle and parts dealers rose 1.3 per cent, boosted by a 2.0 per cent increase at new car dealers. Used car dealers reported a 1.2 per cent drop in sales. Sales at gasoline stations increased 1.9 per cent.

Electronics and appliance sales were up 6.1 per cent in May. Sales at sporting goods, hobby, book and music stores fell 1.8 per cent.

Concerns about the economy increased in recent months amid speculation about whether or not the country slipped into recession in the first six months of the year.