Canadian retail sales declined -0.8% mom to CAD 69.6B in July, worse than expectations of a -0.6% drop. Core sales, which exclude motor vehicles, parts, and fuel, fell even more sharply by -1.2%.
The downturn was broad-based, with eight of nine subsectors posting declines, led by food and beverage retailers. The figures point to cooling consumer demand as households remain squeezed by high borrowing costs and lingering price pressures.
Still, Statistics Canada’s advance estimate suggested a brighter picture ahead, with retail sales projected to rebound by 1.0% mom in August.
