Canadian Retail Spending Extends Growth Streak as Fuel Costs Climb

Statistics Canada reported that core retail sales, which strip out volatile auto and fuel sectors, rose 0.9% to recover from a dip in April. The agency’s preliminary data suggests the momentum will continue into June with an anticipated 0.4% increase. Despite this consistent growth, the underlying economic landscape remains complex, as businesses navigate uncertainty surrounding potential U.S. trade tariffs on Canadian goods.

Consumer resilience currently serves as a vital buffer for the national economy, which has faced sluggish hiring and tepid corporate investment. Bank of Canada Governor Tiff Macklem recently noted that while trade policy headwinds persist, households continue to drive growth. The central bank anticipates that this consumer spending will remain the primary engine for the economy throughout 2026, helping to compensate for ongoing stagnation in housing and domestic business investment. Across the nine categories tracked by the government, gains were universal in nominal terms, though the 3.1% surge in fuel revenue masked a 2.7% decline in the actual volume of gasoline purchased.