Canadian retail sales fell 0.7% in July to C$73.70 billion from C$74.25 billion in June, Statistics Canada said. The agency's advance estimate points to a 1.3% increase in August, while July's fall was marginally smaller than analysts' average forecast.
Sales fell in eight of nine sub-sectors and dropped 1.1% in volume terms. General merchandise retailers posted the largest decline, down 1.9%; motor vehicles and parts dealers fell 0.8%, while food and beverage retailers slipped 0.1%. Building materials was the only sub-sector to rise, up 0.8%.
CIBC Capital Markets senior economist Katherine Judge said lingering trade uncertainty would likely weigh on discretionary spending and that she did not expect the momentum to continue. She added that this meant the Bank of Canada would not raise rates in the near term.
