Canada July retail sales fall 0.7%; seen up 1.3% in August
SPY•Canadian retail sales fell 0.7% to C$73.70 billion in July, while an advance estimate projected a 1.3% increase in August.
1. July sales decline
Retail sales fell from C$74.25 billion in June, with declines in eight of nine subsectors. Sales volume decreased 1.1%. General merchandise retailers posted the biggest drop, at 1.9%, while motor vehicle and parts dealers fell 0.8%.
2. August estimate and outlook
Statistics Canada’s advance estimate projected retail sales would rise 1.3% in August. CIBC Capital Markets senior economist Katherine Judge said lingering trade uncertainty would likely weigh on discretionary spending and added that the Bank of Canada would not raise rates in the near term.
