(Bloomberg) – Retail sales in Canada have made up for the worst start since 2022, with earnings relatively healthy last month.
According to Statistics Canada, the Statistics Canada data showed that retailers’ receipts showed a 1% increase in retailers’ receipts, and a 0.8% drop in July decline. Sales in July also fell 0.8%, with receipts down 1.2% when auto sales were excluded.
The Bureau of Statistics did not provide details of the August estimate, which is based on responses from only more than half of the survey firms. However, it correctly predicts the range of July decline, which also matches the median in Bloomberg’s survey of economists.
The report shows that Canada’s consumption (even if the GDP contract) is stronger in the second quarter – still resilient. However, Canadian banks expect population growth and weak labor markets to weigh household spending in the coming months.
In July, sales in eight of the nine sub-industries fell, and food retailers brought a decline. Core retail sales that exclude gas stations and car dealers fell 1.2%.
Receipts for supermarkets and grocery stores fell 2.5% in the month, although sales in beer, wine and liquor stores rose 3.2%.
Although Canadians cut clothing and accessories, it fell by 3.2%, they still seem to be buying cars, with these dealers increasing by 0.2%.
“By monthly volatility still shows a real trend in spending, supporting demand cuts by a Canadian bank in October,” said Katherine Judge, an economist at the Canadian Imperial Commercial Bank, in a note to investors.
On the region, these numbers show different patterns in spending. Half of Canada’s 10 provinces saw sales drop, with Ontario, the most populous province and the country’s manufacturing heartland hit by automotive and steel tariffs.
On the other hand, retail sales in Prince Edward Island, Quebec Nova Scotia and Manitoba increased. Sales in Saskatchewan remain unchanged.
Charles St-Arnaud, chief economist at Alberta Central, said in an email that data supports the view that the Canadian economy has not deteriorated, but the path forward may be turbulent.
“The trajectory of consumer spending in the coming months will depend on the labor market,” he said. “However, as the labor market is expected to remain moderate, any improvement in retail in the coming months will be moderate as unemployment increases further.”
– With the assistance of Mario Baker Ramirez.
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Last modified: September 20, 2025
