Canada: Retail Sales plunged by 26.4% in April vs. 15.1% expected

Retail Sales in Canada fell more than expected in April.
Advance estimates point to a sharp rebound in May.

Eren Sengezer FXStreet

The data published by Statistics Canada revealed on Friday that Retail Sales in Canada declined by 26.4% on a monthly basis in April to $34.7 billion.

This reading followed March's decline of 10% and came in worse than the market expectation for a fall of 15.1%.

Market reaction

Despite the disappointing data, the USD/CAD pair edged lower and was last seen losing 0.35% on the day at 1.3552.

Additional takeaways from the press release

"Retail sales were down in every subsector for the first time in 27 years (May 1993), with many retailers deemed non-essential in March remaining closed throughout April."

"Given the rapidly evolving economic situation, Statistics Canada is providing an advance estimate of May sales."

"Early estimates suggest that retail sales increased by 19.1% in May. Owing to its preliminary nature, this figure should be expected to be revised."

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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