Q3 retail sales data disappoints

Statistics Canada says retail sales rose 0.5% in July, to $43.3 billion. The move was helped by higher sales at motor vehicle and parts dealers, as well as a boost at clothing and clothing accessories stores.

Overall, sales were up in six out of 11 subsectors, and those six represent 55% of retail trade. However, excluding motor vehicle and parts dealers, retail sales were unchanged for the month.

Motor vehicle and parts dealers, which gained 2%, posted the largest gain in dollar terms; sales at new car dealers gained 2.7%, while clothing and clothing accessories stores gained 2.5%.

A CIBC release says, “Although more was expected from consumers in supporting a return to growth in Q3, July data suggests spending isn’t carrying as much momentum” as was hoped. “July retail sales disappointed on both the headline reading, which came in a few ticks under expectations at 0.5%.”

Further, “There was disappointment with the June figures […] The soft 0.2% volume gain gives slight negative bias to our 2.7% Q3 growth call.”

Staff, with files from The Canadian Press

The Canadian Press is a national news agency headquartered in Toronto and founded in 1917.