Canada Retail Sales Rise 0.6% to C$74.3 Billion as July Seen Falling 0.8%
Updated
Updated · Mortgage Professional · Aug 21
Canada Retail Sales Rise 0.6% to C$74.3 Billion as July Seen Falling 0.8%
3 articles · Updated · Mortgage Professional · Aug 21
Summary
C$74.3 billion in June retail sales topped forecasts after a 0.6% monthly gain, but Statistics Canada's early July estimate points to a 0.8% drop that would end a seven-month run of increases.
Core demand looked firmer in June: sales excluding gasoline and motor vehicles rose 1.2%, while volumes climbed 1.5%, suggesting the gain reflected real spending rather than higher prices.
General merchandise sales jumped 2.7%, clothing, footwear and jewellery rose 3.1%, and motor vehicle dealers gained 1.0%; gasoline receipts fell 4.1% as lower pump prices masked a 4.2% rise in fuel volumes.
The July estimate is based on responses from 56.5% of surveyed companies, well below the usual 87.3% final response rate, leaving room for revision even as it clouds the third-quarter outlook.
For the Bank of Canada, which has held its overnight rate at 2.25% since late 2025, strong June spending argues against near-term easing while a sustained July pullback could reopen the case for cuts.