According to a flash estimate, retail sales in Canada likely fell by 0.8% month-over-month in July, which would mark the steepest decline in ten months and fully offset June’s 0.6% increase. The June gain was itself revised upward from an initial flash estimate of 0.4%.
By sector, sales rose notably at general merchandise retailers (up 2.7%) and at stores specializing in clothing, accessories, footwear, jewelry, and luggage (up 3.1%). Motor vehicle and parts dealers—typically a volatile category and highly sensitive to credit conditions—also saw a 1% increase in sales.
In contrast, receipts at gasoline stations dropped 4.1%, the first decline in four months, even though fuel volumes sold rose 4.2%. This discrepancy reflected lower prices, as a temporary easing of tensions in the Middle East helped push down fuel costs in global wholesale markets.
On a year-over-year basis, total Canadian retail sales were up 5.2%.