For the first time in five months, Canadian consumers reduced their spending in retail stores in May, Statistics Canada reported today.

The government said retailers sold $30.4 billion worth of goods and services, down 1.3% from April, when sales rose 1.5%.

Although five out of the eight retail sectors posted sales declines, weak auto sales were responsible for the bulk of May’s setback. Excluding sales by dealers of new, used and recreational vehicles and auto parts, which account for about one-quarter of the retail industry, retail sales fell by only 0.4% in May. This followed a 0.8% gain in April.

Once prices are taken into account, constant dollar retail sales declined 1.1% in May after rising 1.3% in April, StatsCan said.

Despite May’s decline, retail sales have been quite strong since the start of the year. Cumulative sales in the first five months of 2005 stood at 6.9% above those in the same period of 2004. This growth rate outperformed the year-to-date increases seen in the same five-month period of the previous seven years.

StatsCan noted May’s decline marked only the third monthly sales decline posted by retailers since the start of 2004.