European Investor
24 Sep 2026, 14:38
Canada Retail Sales Fall in July, but August Estimate Points to Strong Rebound
Canadian retail sales declined 0.7% month over month in July, slightly better than the 0.8% contraction expected but reversing the previous month’s 0.6% increase.
Core retail sales, which exclude some volatile components, also fell 0.7%, missing expectations for a 0.5% decline and weakening from a 0.5% gain previously.
The July figures point to softer household spending momentum, but an early estimate for August showed retail sales rebounding 1.3% month over month.
The mixed data suggest consumer demand weakened in July but may have recovered quickly in August. For markets, the stronger August estimate partly offsets the softer July report and may limit the extent to which the data reinforce expectations for easier Bank of Canada policy.
Canadian retail sales declined 0.7% month over month in July, slightly better than the 0.8% contraction expected but reversing the previous month’s 0.6% increase.
Core retail sales, which exclude some volatile components, also fell 0.7%, missing expectations for a 0.5% decline and weakening from a 0.5% gain previously.
The July figures point to softer household spending momentum, but an early estimate for August showed retail sales rebounding 1.3% month over month.
The mixed data suggest consumer demand weakened in July but may have recovered quickly in August. For markets, the stronger August estimate partly offsets the softer July report and may limit the extent to which the data reinforce expectations for easier Bank of Canada policy.
