Canada's Core Retail Sales Drop in April, Signaling Weak Consumer Spending

In April, Canada's nominal retail sales rose by 0.5% month-over-month, but core retail sales—excluding automobiles and gasoline—declined by 0.7%. Data showed a notable weakening in consumer spending on everyday categories such as groceries and household goods. Although preliminary estimates for May indicate some resilience in consumer spending, the outlook remains uncertain due to a soft labor market, uncertainty surrounding U.S. trade policy, and inflation concerns driven by energy prices.