FX.co ★ Canada Retail Sales Drop the Most in 2 Years

Retail sales in Canada are projected to have decreased by 1.1% in May 2025 compared to the previous month, based on preliminary estimates. This would mark the most significant drop in sales since March 2023, suggesting a substantial impact from U.S. tariffs, which have led consumers to cut back on their usual spending habits. Meanwhile, the retail turnover actually increased by 0.3% in May, adjusted down from an initial estimate of a 0.5% rise. Notably, sales surged in certain categories: motor vehicles and parts experienced a 1.9% increase reaching C$20.029 billion, while sporting goods, hobbies, musical instruments, books, and miscellaneous items grew by 1% to C$4.057 billion. Furniture sales rose by 0.8% to C$3.898 billion, and food and beverage sales saw a modest 0.2% gain to C$13.256 billion. Conversely, sales in gasoline stations decreased by 2.7% to C$6.054 billion, although the volume of gas sold increased by 0.4%.