Latest news with #retailsales
Sky News
6 hours ago
- Business
- Sky News
Good economic news as sunny weather boosted retail sales
Retail sales grew in June as warm weather boosted spending and day trips, official figures show. Spending on goods such as food, clothes and household items rose 0.9%, the Office for National Statistics (ONS) said. It's a bounce back from the 2.8% dip in May, but last month's figure was below economists' forecast 1.2% uplift as consumers dealt with higher prices from increased inflation. Also weighing on spending was reduced consumer confidence amid talk of higher taxes, according to a closely watched indicator from market research firm GfK. Retail sales figures are significant as they measure household consumption, the largest expenditure in the UK economy. Growing retail sales can mean economic growth, which the government has repeatedly said is its top priority. 0:56 Where have people been shopping? June's retail sales rise came as people bought more in supermarkets, and retailers said drinks sales were up. While hot and sunny weather boosted some brick-and-mortar shops, the heat led some to head online. Non-store retailers, which include mainly online shops, but also market stalls, had sold the most in more than three years. Not since February 2022 had sales been so high as the Met Office said England had its warmest ever June, and the second warmest for the UK as a whole. The June increases suggest that the May drop was a bump in the road. When looked at as a whole, the first six months of the year saw retail sales up 1.7%. Filling up the car for day trips to take advantage of the sun played an important role in the retail sales growth. When fuel is excluded, the rise was smaller, just 0.6%. Welcome news Despite lower consumer sentiment and more expensive goods, consumers are benefitting from rising wages and are cutting back on savings. The ONS lifestyle survey - backed up by hard data like the Bank of England's money and credit figures - shows that households have rebuilt their rainy day savings and are cutting back on the amount of money they squirrel away each month.
Bloomberg
a day ago
- Business
- Bloomberg
Toronto Retail Sales Weak Due to Tariff Damage, Real Estate Slump
By and Curtis Heinzl Save Retail sales in Toronto are lagging the rest of Canada, as the region that depends on manufacturing exports shows signs of struggling economic growth. Sales receipts from retailers in Toronto fell 2.8% in May, according to data released Thursday by Statistics Canada. Retail sales in the city grew just 2.4% from a year before, less than half the nationwide growth rate.
Yahoo
a day 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
a day 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.
CTV News
a day ago
- Business
- CTV News
Statistics Canada reports May retail sales down 1.1 per cent at $69.2 billion
Statistics Canada says retail sales decreased 1.1 per cent to $69.2 billion in May, driven by sales decreases at motor vehicle and parts dealers. Pickup trucks are pictured at an automotive dealership in Ottawa on Friday, Aug. 11, 2023. THE CANADIAN PRESS/Sean Kilpatrick OTTAWA — Statistics Canada says retail sales decreased 1.1 per cent to $69.2 billion in May, driven by sales declines at motor vehicle and parts dealers. However, the agency says its preliminary figures for June point to an increase of 1.6 per cent for that month. For May, three of nine subsectors were down as sales at motor vehicle and parts dealers decreased 3.6 per cent, led by 4.6 per cent lower sales at new car dealers. Core retail sales, which exclude gasoline stations and fuel vendors and motor vehicle and parts dealers, were relatively unchanged in May. The only subsector within core retail sales to post a decline was food and beverage retailers, down 1.2 per cent, led by lower sales at beer, wine and liquor retailers, along with supermarkets and other grocery retailers. Building material and garden equipment and supplies dealers rose 1.9 per cent. In volume terms, overall retail sales decreased 1.4 per cent in May. This report by The Canadian Press was first published July 24, 2025.
