Canada: Overall weak retail results have to be interpreted with caution – NBF

According to National Bank of Canada’s analyst Krishen Rangasamy the Canadian retail sales report for April was much weaker than forecast but they expected an improvement ion the coming monhts.

Key Quotes:

“Canadian retail sales slumped 1.2% in April, disappointing consensus which was expecting no change. There were upward revisions to the prior month from +0.6% to +0.8%, although that’s scant consolation.”

“The Canadian retail data for April was much weaker than expected, with discretionary sales (i.e. sales excluding gasoline, groceries and health products) sinking at the fastest pace in three years.”

“The overall weak retail results have to be interpreted with caution. While the outlook for Q2 Canadian consumption may not look good right now, we expect the picture to improve in the coming months starting with a sharp sales rebound in May.”