FX.co ★ Canada Retail Sales Take a Hit in September

In September 2025, retail sales in Canada are anticipated to have experienced a 0.7% month-over-month decline, based on an initial estimate. This would represent the third-largest drop observed this year, effectively negating the 1% increase recorded in August, which was noted as the second-most significant monthly rise for 2025. In August, motor vehicle and parts dealers contributed most significantly to this positive trend with an increase of 1.8%, driven by new car sales at 2.3% and used car sales at 1.5%. Conversely, gasoline stations and fuel vendors saw a 2.0% decline, marking the second month of consecutive decreases. Additionally, core retail sales saw a 1.1% rebound in August after experiencing a 1.2% decline in July, bolstered by increased sales at general merchandise outlets at 2.4% and clothing, shoes, jewelry, and luggage retailers at 3.2%, while sales of building materials and garden equipment experienced a slight decrease of 0.3%.