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Yahoo
40 minutes ago
- Business
- Yahoo
Canada's retail sales shrink as tariffs bite, June expected to improve
By Promit Mukherjee OTTAWA (Reuters) -Canada's retail sales shrank by 1.1% in May as consumers curtailed car purchases and spent less at supermarkets, convenience stores and on alcohol, data showed on Thursday. Retail sales - closely watched by economists as they give an indication of GDP trends - had held up fairly strongly in the last two months, as concerns around the timing and magnitude of tariffs threatened by U.S. President Donald Trump brought forward purchases. But sales weakened as the impact of tariffs started hitting consumers and the general outlook around the economy paled. By contrast, an early or "flash" estimate showed retail sales likely grew 1.6% in June, though this figure is prone to correction, statistics agency StatsCan said. Analysts polled by Reuters had expected a drop during May, similar to what was reported, and barring autos and auto parts, which contribute almost 30% to overall sales, they had predicted a drop of 0.3%. Sales excluding autos in May were down 0.2%, StatsCan added. The biggest drop was posted in the motor vehicles and parts dealers category, where sales contracted by 3.6%, after two consecutive months of increases. The drop was led by 4.6% lower sales at new car dealers, which fell for the first time since February, it said, adding that in volume terms, retail sales decreased 1.4% in May. LOWER BEER SALES Another declining sector was food and beverages. This category, which contributes up to 18% of total retail sales, saw purchases shrinking by 1.2%, led by lower transactions at convenience stores and a decline in sales of beer, wine and liquor. Economists noted the expected rise in sales in June which could indicate that GDP might improve in the second half of the year, but said trade tensions are likely to keep consumer spending under check. "Unless a trade deal is reached to significantly reduce U.S.-Canada tariffs ... we expect households will continue to tighten their purse strings as job losses and higher prices from tariffs squeeze disposable income," said Michael Davenport, senior economist at Oxford Economics. The Bank of Canada will announce its rate decision next week and is likely to keep borrowing costs on hold, but most economists expect the central bank will need to start easing rates again to support the economy. The largest increase in retail sales in May came in building materials, and garden equipment and supplies, which posted an increase of 1.9% following a decline of 0.3% in April. A survey of retailers by StatsCan on the impact of U.S. tariffs and Canada's countermeasures showed that 32% of retail businesses were impacted by the trade tensions in May, compared with 36% in April. The most common impacts in May were price increases, changes in demand for products, and increased expenses for raw materials, shipping or labor, it said, citing the survey. Sign in to access your portfolio
Reuters
an hour ago
- Business
- Reuters
Canada's retail sales shrink as tariffs bite, June expected to improve
OTTAWA, July 24 (Reuters) - Canada's retail sales shrank by 1.1% in May as consumers curtailed car purchases and spent less at supermarkets, convenience stores and on alcohol, data showed on Thursday. Retail sales - closely watched by economists as they give an indication of GDP trends - had held up fairly strongly in the last two months, as concerns around the timing and magnitude of tariffs threatened by U.S. President Donald Trump brought forward purchases. But sales weakened as the impact of tariffs started hitting consumers and the general outlook around the economy paled. By contrast, an early or "flash" estimate showed retail sales likely grew 1.6% in June, though this figure is prone to correction, statistics agency StatsCan said. Analysts polled by Reuters had expected a drop during May, similar to what was reported, and barring autos and auto parts, which contribute almost 30% to overall sales, they had predicted a drop of 0.3%. Sales excluding autos in May were down 0.2%, StatsCan added. The biggest drop was posted in the motor vehicles and parts dealers category, where sales contracted by 3.6%, after two consecutive months of increases. The drop was led by 4.6% lower sales at new car dealers, which fell for the first time since February, it said, adding that in volume terms, retail sales decreased 1.4% in May. Another declining sector was food and beverages. This category, which contributes up to 18% of total retail sales, saw purchases shrinking by 1.2%, led by lower transactions at convenience stores and a decline in sales of beer, wine and liquor. Economists noted the expected rise in sales in June which could indicate that GDP might improve in the second half of the year, but said trade tensions are likely to keep consumer spending under check. "Unless a trade deal is reached to significantly reduce U.S.-Canada tariffs ... we expect households will continue to tighten their purse strings as job losses and higher prices from tariffs squeeze disposable income," said Michael Davenport, senior economist at Oxford Economics. The Bank of Canada will announce its rate decision next week and is likely to keep borrowing costs on hold, but most economists expect the central bank will need to start easing rates again to support the economy. The largest increase in retail sales in May came in building materials, and garden equipment and supplies, which posted an increase of 1.9% following a decline of 0.3% in April. A survey of retailers by StatsCan on the impact of U.S. tariffs and Canada's countermeasures showed that 32% of retail businesses were impacted by the trade tensions in May, compared with 36% in April. The most common impacts in May were price increases, changes in demand for products, and increased expenses for raw materials, shipping or labor, it said, citing the survey.
Bloomberg
3 hours ago
- Business
- Bloomberg
Consumer Spending Loses Steam in Canada as Auto Sector Slides
Canadian retail sales are flashing a warning sign of weaker spending by consumers who may be increasingly worried about rising prices and their job prospects. An advance estimate suggests receipts for retailers rose 1.6% in June, following May's 1.1% decline and April's 0.4% increase, according to Statistics Canada data released Thursday. Those figures point to a 0.4% increase over those three months, the weakest quarterly pace of retail spending in a year.
Bloomberg
6 hours ago
- Business
- Bloomberg
Tourists Tame Their Shopaholic Ways, If They Even Come to the US
Economics Inflation & Prices Some travelers are staying away from vacation hotspots, while others are rethinking their budgets.
Yahoo
10 hours ago
- Automotive
- Yahoo
Zeekr-commissioned Europe-wide Electric Vehicle survey finds growing interest in e-mobility and acceptance of Chinese brands
A survey of more than 8,000 people across Europe shows that interest in EVs is steadily increasing, with almost three in every five respondents saying they are likely to own one by 2030: up from just 42% this year Younger consumers and those in the Nordics – notably Sweden and Denmark – show the strongest intent to switch to e-mobility, suggesting cultural and generational shifts are helping to accelerate adoption Sentiment towards Chinese brands is improving, with 38% of consumers saying they are more open to buying a Chinese EV than they were just a year ago Perceptions of Chinese EVs are changing, with nearly half of respondents agreeing they offer value for money, and 40% agreeing that premium Chinese EVs are as good as those from the competition While brand nationality still matters to many, attitudes are softening, particularly among younger consumers and those already driving EVs Cost, range, and charging remain key barriers to adoption but fast-improving technology and investments in infrastructure will help overcome these To download media assets please visit: Zeekr Europe Media Assets For further information please visit AMSTERDAM, July 24, 2025 /PRNewswire/ -- Global electric mobility brand Zeekr has commissioned a pan-European survey of more than 8,000 people to further develop its understanding of consumer attitudes towards electric vehicles and electrification, including sentiments towards Chinese brands and barriers to EV ownership. Key findings from the survey, conducted in partnership with Markettiers in Belgium, Denmark, Germany, the Netherlands, Norway, Sweden, Switzerland, and the UK, found that consumers – notably among younger age groups and those in the Nordics – are increasingly receptive towards EVs, and are now more appreciative of Chinese EV brands. And while for many, the country of origin of their next vehicle remains an important consideration, attitudes towards Chinese EVs are softening, particularly those who have already made the switch from combustion engines. There is more widespread appreciation for the advanced technology that Chinese brands are bringing to the market, as well as quality and safety. The survey confirmed that although widely cited barriers to e-mobility of range, charging and cost remain front-of-mind for many, models offering range greater than 500km (WLTP) are commonplace, the advent of 800V technology offers convenient ultra-fast charging, and improvements in technology and increasing competition in the marketplace are making EVs increasingly attractive. Zeekr Europe acting CEO, Lothar Schupet, said: "The benefits of electric vehicles are widely understood but we appreciate that not every market or every age group is as receptive to them as others. We wanted to look even deeper into the positive and negative views that consumers across Europe have towards EVs in general and Chinese EVs in particular to better understand the barriers to entry – both real and perceived. "The survey we commissioned does exactly that, and will help us to create even better EVs that will help further accelerate the transition to e-mobility throughout Europe. And as more Chinese brands launch in Europe, we believe that having Design and R&D Centres in Sweden and integrating customer co-creation at the heart of our product development process gives Zeekr a European soul that truly sets it apart." Nordic markets show continuing interest in electrification: more than 62% of respondents in Sweden said they were interested in owning an EV by the end of 2027, compared to 52% for Europe as a whole. Younger consumers also showed strong interest, with 62% of 35-44 year-olds expressing the same intent by the end of 2028: even looking out to the end of 2035, only 45% of those aged 55+ did. Cultural and generational shifts will be key drivers of e-mobility. For Chinese brands establishing themselves in Europe, the outlook is largely positive, reflecting the significant investments made in product development and quality. Asked if they were more open to buying a Chinese EV than they were 12 months ago, 38% of respondents said that were, while only 17% were not. Moreover, 53% of those already driving an EV said yes, suggesting an appreciation of the leadership position Chinese brands have in battery and charging technology. Respondents in the UK – Europe's second-largest passenger car market1 – were the least likely to factor an EV's country of origin into their purchasing decision, with 59% saying it was not important. Even in conservative markets where traditional luxury brands have a strong presence, consumers recognise that Chinese brands can compete on equal terms, with more than half of respondents in Switzerland agreeing that premium Chinese EVs are now as good as their Western equivalents. For all manufacturers launching EVs in Europe, customer perceptions on range, charging, and cost continue to be challenges that must be overcome, with 480km+ on a single charge, 10-80% SoC in 10 minutes, and lower purchase price cited by 42%, 40%, and 45% of all respondents respectively as requirements that would make them more likely to go electric. Taking Zeekr's European model range of the Zeekr 001, Zeekr X, and Zeekr 7X as an example, consumers already have a choice of premium EVs priced from less than €35,0002, range of up to 620km (WLTP)3, and charging from 10-80% in as little as 10.5 minutes using 480kW DC chargers4, suggesting that some barriers can be more than met with vehicles already available in the market. Moreover, Zeekr believes that its EVs should also offer a best-in-class value proposition through feature-rich specifications that include high-end features that customers don't expect – and do not have to – to pay extra for. The Zeekr 7X, for instance, comes with a panoramic roof, Matrix LED headlights, heat pump, and 22kW on-board charger as standard – many competitors offer this equipment only as an option. The future of sustainable personal mobility is unquestionably electric, and by making the switch from combustion engine vehicles to EVs, consumers can play their part in helping to drive down emissions and enjoy a more refined, more relaxing, and more enjoyable driving experience. As this survey shows, some markets in Europe are further along this transition than others, but as battery technology and charging continue to improve, the benefits of EVs can only become more compelling. (Zeekr 7X: Combined power consumption in kWh/100km: 17.7-19.9 (WLTP). Combined CO2 emissions in g/km: 0. Zeekr 001: Combined power consumption in kWh/100km: 17.3-18.5 (WLTP). Combined CO2 emissions in g/km: 0. Zeekr X: Combined power consumption in kWh/100km: 16.4-17.3 (WLTP). Combined CO2 emissions in g/km: 0). 1 ACEA 2024 registration figures2 Pricing applies to Netherlands market3 Charging times will vary according to factors including the charging equipment, ambient temperature, battery temperature, battery state of charge, and age and condition of the battery and the vehicle4 Range according to the WLTP drive cycle under controlled conditions. Real-world range may vary, dependent on vehicle and battery condition, actual route, environmental conditions, driving style, load, wheel and tyre specification, and optional equipment and accessories fitted About Zeekr Zeekr (NYSE: ZK) is the global premium electric mobility technology brand from Geely Holding Group. Zeekr aims to create a fully integrated user ecosystem with innovation as a standard. The brand utilizes Sustainable Experience Architecture (SEA) and develops its own battery technologies, battery management systems, electric motor technologies, and electric vehicle supply chain. Zeekr's value is equality, diversity, and sustainability. Its ambition is to become a true mobility solution provider. Zeekr operates its R&D centers and design studios in Gothenburg, Ningbo, Hangzhou, and Shanghai and boasts state-of-the-art facilities and world-class expertise. Since Zeekr began delivering vehicles in October 2021, the brand has delivered more than 510,000 vehicles to date including the Zeekr 001, Zeekr 001 FR, Zeekr 009 MPV, Zeekr X urban SUV, Zeekr 007, Zeekr 7X, Zeekr MIX and Zeekr 7GT. Zeekr has announced plans to sell vehicles in global markets, and has an ambitious roll-out plan over the next 5 years to satisfy the rapidly expanding global EV demand. Notes for Editors: To download media assets please visit: Zeekr Europe Media Assets Photo - View original content to download multimedia: Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
