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Canada's retail sales rose in June, but are expected to decline in July.
Jin10 Data, August 22 – After a weak second quarter, Canadian retail sales are expected to decline, reflecting weakened consumer spending amid heightened trade uncertainty and slowing population growth. According to data from Statistics Canada on Friday, retail sales are estimated to have fallen 0.8% in July, following a jump of 1.5% in June. The June figures align with market expectations. Retail sales in the second quarter only rose 0.4%, down from a growth rate of 1.1% in the first quarter, making it the weakest quarterly data since mid-2024. The growth in June retail sales was mainly driven by the food, beverage, and clothing retail sectors, with all subsectors recording growth that month. Despite significant interest rate cuts by the Bank of Canada since June of last year, tariffs and economic uncertainty continue to gradually slow household consumption.