09:06 AM EDT, 06/20/2025 (MT Newswires) -- Canadian retail sales rose 0.3% month-over-month in April, a couple of tenths softer than the flash estimate, said Bank of Montreal (BMO).

Sales were up in six of nine sectors, but Statistics Canada Friday highlighted that retailers in all sectors reported their sales were negatively impacted by trade tensions.

The headline increase was led by autos (+1.9%) as consumers rushed to buy pre-tariff inventory, noted the bank. Sales excluding autos fell 0.3% month over month, weighed by lower gasoline prices -- spending excluding autos and gasoline edged up 0.1%.

The regional picture was split as half of the 10 provinces posted gains, with the weakness concentrated in the Atlantic provinces and Alberta.

After adjusting for price swings, spending was up 0.5% in volume terms. Still, weakness in wholesale and manufacturing suggests that April real gross domestic product growth could be disappointing when it is released next week, stated BMO.

The flash estimate for May points to a 1.1% month-over-month slide in retail sales, with a reversal in autos likely weighing. However, uncertainty and continued cooling in the job market are probably keeping consumers cautious, added the bank.

Looking through the tariff- and gasoline price-driven swings, the retail sales report points to slowing consumer spending through the spring, according to BMO. The weak flash estimate for May, even if largely auto-driven, is consistent with the bank's view that the economy struggled in Q2.