June retail sales inch higher

Canadian retail sales were 0.1 per cent higher in June, rising to $35.9 billion. 

In volume terms, the gain was greater — 0.9 per cent. Lower prices were observed at gasoline stations and new car dealers, Statistics Canada said Tuesday.

"Looking ahead, further sales gains will likely be modest as income growth remains subdued, households have already cut into savings rates, and consumer confidence is now labouring," BMO economist Doug Porter said.

Five of the 11 subsectors the data agency tracks were higher. In dollar terms, the largest increase was seen at motor vehicles and parts dealers, where sales were 2.1 per cent higher.

In volume terms, sales rose 5.1 per cent at electronics and appliance stores. Sales in this subsector have been trending upward since October 2009.

The largest decline was at gasoline stations, where sales fell 2.7 per cent, as pump prices were lower. June was the third straight month of sales declines at gasoline stations, after increases for the previous 11 months.

Sales at clothing and clothing accessories stores fell 1.1 per cent, a reversal of the upward trend in the subsector since April 2009.

'Regional wrinkle' in N.S.

Regionally, sales were down in six provinces during the month.

Sales declined in all of the Atlantic provinces except Nova Scotia, where they rose 3.1 per cent.

"One notable regional wrinkle was the 3.1 per cent surge in Nova Scotia, as shoppers rushed to beat a two-point hike in the HST at the start of July," Porter said. "Aside from that province, sales were down fractionally." 

Sales increased 0.3 per cent in Ontario following declines in April and May. Quebec retailers registered a 0.2 per cent sales decline in June, a third consecutive monthly decrease.