Canadian retail sales rose 0.6% in June, Statistics Canada said on Thursday, in line with expectations, as auto sales helped offset declines in other sectors..
**Key Points:**.
* Auto sales increased 3.9%.
* Sales at gasoline stations declined 1.8%.
* Clothing and accessories stores saw a 2.5% decrease.
The data suggest that the weakness seen in the Canadian economy over the last few months may be starting to ease, although the overall trend remains weak..
Economists had forecast a 0.6% increase in June retail sales, according to a Reuters poll. Retail sales rose 0.8% in May, a downwardly revised reading from an initially reported increase of 1.2%..
Core retail sales, which exclude gasoline stations and motor vehicles, rose 0.4% in June, a smaller rise than the 0.6% increase in May..
**Sectoral Breakdown:**.
Sales at motor vehicle and parts dealers increased 3.9% in June, the largest gain among all sectors. This was driven by a 4.5% increase in sales of new motor vehicles..
Sales at gasoline stations fell 1.8%, reflecting lower prices at the pump..
Sales at clothing and accessories stores declined 2.5%, the largest decrease among all sectors..
**Outlook:**.
The Canadian economy has been struggling in recent months, with GDP growth slowing and unemployment rising. The retail sector has been particularly weak, with sales falling in five of the past six months..
However, the June retail sales data suggest that the weakness may be starting to ease. Auto sales have been a key driver of the recovery, and there are some signs that consumer spending is starting to pick up in other sectors as well..
RBC Economics said that while the June retail sales data is encouraging, it is too early to say whether the sector has turned a corner. .
