Canadian retail sales are estimated to have increased 1.3% in August from the previous month, which would mark the strongest monthly gain since January and a rebound from July’s decline, according to a preliminary estimate from Statistics Canada.
The advance estimate follows a 0.7% month-over-month decline in July, when weakness was recorded across several major retail categories. On an annual basis, retail sales in July were 5.1% higher than a year earlier.
Auto, Fuel and General Merchandise Sales Fell in July
Sales at motor vehicle and parts dealers declined 0.8% in July, their first decrease in four months. The decline was led by new car dealers, where sales fell 1.3%.
Gasoline stations and fuel vendors recorded a 0.9% decrease, while sales at general merchandise retailers dropped 1.9%.
Clothing, clothing accessories, shoes, jewelry, luggage and leather goods retailers also reported weaker activity, with sales falling 1.2%.
Some categories moved in the opposite direction. Sales at building material and garden equipment and supplies dealers increased 0.8%, while used car dealers recorded a 2.9% gain.
Core Retail Sales Decline 0.7%
Core retail sales — which exclude gasoline stations and fuel vendors as well as motor vehicle and parts dealers — declined 0.7% in July, indicating that weakness extended beyond the more volatile automotive and energy categories.
The preliminary 1.3% increase estimated for August, if confirmed in the final data, would represent a notable reversal from July and the strongest monthly retail sales growth since the beginning of the year.
