Canada

Canadian Retail Sales Rise as Consumer Spending Remains Resilient

Canadian retail sales increased 1.0% month-over-month in May, accelerating from April's 0.6% gain and pointing to stronger consumer spending momentum.

However, underlying trends were less robust. Core retail sales, which exclude certain volatile categories, rose just 0.1% in April, well below economists' expectations of 0.8% and slowing sharply from the previous month's 1.2% increase.
Canadian Housing Market Shows Resilience as Wholesale Sales Beat Expectations

Canada's economy delivered mixed but generally encouraging signals on Monday, as housing construction activity exceeded expectations and wholesale sales posted stronger-than-forecast growth.

Housing starts came in at an annualized rate of 261,400 units in May, surpassing economists' expectations of 255,000 units. While the figure was below April's 278,400 units, the result suggests that homebuilding activity remains relatively resilient despite elevated borrowing costs and affordability challenges.

Meanwhile, wholesale sales increased 0.6% month-over-month in April, significantly outperforming forecasts for a 0.1% gain. Although sales growth slowed from March's robust 1.6% increase, the latest data points to continued strength in business activity and inventory movement across the Canadian economy.

Overall, the data indicate that Canada's economy remains on stable footing, with key sectors continuing to expand even as growth moderates from earlier highs.
Bank of Canada Holds Interest Rates Steady at 2.25%

The Bank of Canada left its benchmark interest rate unchanged at 2.25%, matching market expectations and marking another pause in its monetary policy easing cycle.
Canada’s economy rebounded in April, with monthly GDP growth accelerating to 0.4% after a 0.1% contraction in the previous month.
Canada’s current account deficit widened sharply to -C$7.2 billion in the first quarter, far worse than the expected -C$3.9 billion deficit and a major deterioration from the previous -C$1.0 billion reading.
Canadian retail sales rose 0.6% month-over-month in April, slowing from the previous 0.9% increase
Canada Inflation Cools Sharply in April

Canada’s headline inflation slowed notably in April, with CPI rising 0.4% month-over-month, below market expectations of 0.7% and down from the previous 0.9% increase.

Meanwhile, core CPI, which excludes more volatile items, rose 0.2% on a monthly basis, unchanged from the prior reading.
Canada’s housing starts surged to 279.3K in April, well above the 244.0K consensus and sharply higher than the previous 239.7K reading.
Canadian wholesale sales rose 1.9% month-over-month in March, beating the 1.3% expectation, though slowing from the previous 2.4% increase.
Canada’s labor market weakened in April as employment unexpectedly declined and unemployment moved higher.

The Canadian economy lost 17,700 jobs during the month, missing expectations for a 12,900 increase and reversing the previous gain of 14,100 jobs. Meanwhile, the unemployment rate rose to 6.9% from 6.7%, above market forecasts.

The data points to softer labor market conditions in Canada, with rising unemployment and declining hiring activity potentially increasing pressure on the Bank of Canada to consider additional monetary easing if economic momentum continues to slow.
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