The Globe and Mail reports in its Saturday edition that Canadians reduced their spending in May, with retail sales dropping by 0.8 per cent, mainly due to decreases at grocery stores and alcoholic beverage retailers, according to Statistics Canada's report on Friday. A Canadian Press dispatch to The Globe reports that Statscan noted that sales were lower in eight of the nine subsectors it tracks, bringing overall retail sales down to $66.1-billion for the month. The report said core retail sales, which exclude gas stations and motor vehicle and parts dealers, were down 1.4 per cent. CIBC senior economist Andrew Grantham said in a note that the declines in both overall and core retail sales were worse than expectations and broadly offset gains seen in April. He added sluggish retail trends give the Bank of Canada one more reason to continue cutting its benchmark interest rate next week. The BOC is expected to make an announcement on its overnight rate on Wednesday. Desjardins's Royce Mendes is forecasting the BOC will deliver another quarter-point cut this month, with households struggling under the weight of high borrowing costs. The auto sector was the only one to see a modest increase in retail sales in May.