Preliminary data shows Canada’s retail sales fell sharply in July, reversing a revised 0.6% June increase and signaling weakening consumer demand.
Canada’s retail sales are projected to decline 0.8% month-over-month in July, the steepest drop in ten months, according to preliminary estimates. The decline fully offsets June’s upwardly revised 0.6% gain, pointing to a slowdown in consumer spending.
Year-over-year, retail turnover grew 5.2%, though the monthly contraction suggests cooling demand amid broader economic pressures. June’s figures were revised higher from an initial 0.2% rise, but the July drop indicates potential headwinds for the retail sector.
The data reflects weakening consumer confidence and could influence monetary policy expectations as the Bank of Canada assesses economic momentum.