Key facts
- Canadian retail sales fell 0.7% in July.
- Retail sales volume decreased 1.1% in July.
- Sales are projected to increase 1.3% in August.
Canadian retail sales saw a decrease of 0.7% in July, reaching C$73.70 billion, according to data released by Statistics Canada. This decline was largely attributed to lower sales at general merchandise retailers, which saw a slump of 1.9%. Sales at motor vehicle and parts dealers also dropped by 0.8%, while food and beverage retailers experienced a 0.1% decrease. The only sub-sector to post an increase was building materials, with sales up 0.8%. In terms of volume, retail sales decreased by 1.1% in July. However, Statistics Canada provided an advance estimate projecting a rebound in August, with sales expected to increase by 1.3%. Katherine Judge, senior economist at CIBC Capital Markets, noted that lingering trade uncertainty may weigh on discretionary spending, suggesting the Bank of Canada is unlikely to raise interest rates in the near term.