Canadian Retail Sales Fall 0.8% in July

Statistics Canada reported an advance estimate showing Canadian retail sales fell 0.8% in July. This represents the first decline in seven months and contradicted predictions from Bloomberg-surveyed economists, who had expected a 0.4% increase.

The July drop follows a 0.6% gain in June. Despite the recent dip, the second quarter of the year showed a strong rebound in consumption, with quarterly retail sales rising 2.2%. This marks the fastest pace of growth since late 2024.

Growth in June was broad-based, with increases in seven of nine subsectors, led by clothing, general merchandise, and motor vehicle parts. This recovery follows a period of flattened economic growth that officials attributed to trade disputes with the United States and slowing population growth.