Canadian Retail Sales Bounce Back from July Decline

Canadian retail sales declined in July by 0.7% to $73.7 billion, according to Statistics Canada (StatCan). However, economists believe that this dip was not unexpected and that consumer spending rebounded robustly in August, with a flash estimate predicting a 1.3% increase.

Michael Davenport, senior economist at Oxford Economics, stated that 'overall, I think the number that stands out is the flash estimate for August, which shows that retail sales likely rebounded quite strongly.' He also noted that this trend points to an underlying pattern of steady growth in retail sales.

Sébastien Mc Mahon, Chief Economist at iA Financial Group, shared a similar view, saying that 'if you look at the trade front, of course it's top of mind, we are seeing exports of goods to the rest of the world that are accelerating, so this strategy to diversify Canada's economy seems to be working.'