08:48 AM EDT, 06/20/2025 (MT Newswires) -- Canadian consumers continued to spend in April, but a decline in the May advance estimate for retail sales provides another indication that the economy is heading for a stall in Q2, said CIBC after Friay's release of the data.

Retail sales edged up by 0.3% month over month in April, with that increase very close to the advance estimate and consensus of 0.4% month over month, noted the bank.

Auto sales were once again the main driver of growth, with the nearly 2% increase possibly reflecting some efforts by households to make purchases ahead of feared tariff-led price increases, stated CIBC. Gasoline sales were the main negative, albeit mainly due to lower prices.

Excluding autos and gasoline, sales were 0.1% month-over-month higher and in volume terms total sales advanced by a solid 0.5% month over month in April.

According to supplemental questions, 36% of retailers were impacted by trade tensions with the United States, with those impacts including price increases, supply chain issues and shifts in demand.

The advance estimate for May pointed to a 1.1% month-over-month decline in sales, although at least some of this could reflect a pull back in auto sales similar to that seen in the U.S. following a couple of months of above-trend purchases, added the bank.