Retail sales in Canada fell by 1.1% in May, marking the largest drop in a year.

According to Gate News bot, Bloomberg reports that last month, as the buying frenzy caused by tariff hikes leading to a rise in car prices seems to be coming to an end, the pressure faced by Canadian consumers has become more apparent.

Statistics Canada said on Friday that preliminary estimates indicate a 1.1% plunge in retailer revenue in May, marking the largest decline in a year. This offset a 0.3% increase in April, which was slightly below the median forecast from a Bloomberg economist survey.

Since automobiles and their parts account for a quarter of Canada's retail sales, the significant difference in sales over the past two months indicates that fluctuations in car purchases are one of the reasons for the economic weakness in the middle of the second quarter. Most of the growth in April also came from automobiles. Sales excluding automobiles fell by 0.3% that month, a decline greater than economists had expected, marking the second consecutive month of decline.

Automobile sales have also played a key role in the national retail revenue. Among the 10 provinces across the country, sales increased in 5 provinces, with the most significant growth in automobile and parts sales occurring in British Columbia, Ontario, and Quebec (the three largest provincial economies). On the other hand, New Brunswick saw the largest decline in sales, mainly due to a drop in automobile and parts sales.