FX.co ★ Canada Retail Sales Seen Pulling Back

Retail sales in Canada are projected to have decreased by 0.8% in July 2025 from the prior month, based on an initial estimate. This represents one of the sharpest declines in over a year, consistent with fluctuations in retail due to the uncertain trade policies from the U.S. affecting consumer behavior. In July, retail sales surged by 1.5% to reach C$70.2 billion, marking the most significant rise this year, albeit slightly revised down from the preliminary 1.6% increase estimate. Core retail sales rose by 1.9%, driven by higher turnover in beverage retailers (2.3%), supermarkets (1.8%), and clothing and accessories retailers (5.1%). Additionally, gasoline stations saw an increase in turnover (1.8%) despite lower prices, as volumes rose by 2.7%.