Canada Retail Sales Slump in July Amid Trade Uncertainty

Canadian retail sales declined by 0.7% in July, according to data from Statistics Canada, following a strong gain of 0.6% in June. The decrease was less severe than the 0.8% drop expected by economists.

CIBC analysts stated that Canadian consumers spent cautiously in July, leaving retail sales lower, but added that lingering trade uncertainty will likely weigh on discretionary spending ahead. This means that the Bank of Canada (BoC) won't be raising interest rates in the near term.

The decline was broad-based, with eight out of nine subsectors experiencing a decrease. Sales excluding autos also dropped 0.7%, worse than the 0.5% decline economists had expected.