Canada’s retail sales up 0.4 percent in July

Statistics Canada reported on Friday that the Canadian retail sales rose 0.4 percent m-o-m at CAD51.48 billion in July, following a revised 0.1 percent m-o-m drop in June (originally unchanged m-o-m).

The result was below economists’ forecast, suggesting a 0.6 percent m-o-m gain for July.

According to the report, sales grew in 6 of 11 subsectors, representing 71 percent of retail trade.

The July m-o-m increase was mainly due to higher sales at motor vehicle and parts dealers (+1.5 percent m-o-m; their largest gain since February). Sales also increased at health and personal care stores (+2.6 percent m-o-m), electronics and appliance stores (+0.7 percent m-o-m) and food and beverage stores (+0.6 percent m-o-m).

Excluding motor vehicle and parts dealers, retail sales edged down 0.1 percent m-o-m in July compared to an unrevised 0.9 percent m-o-m climb in June and economists’ forecast of 0.3 percent m-o-m advance. Excluding motor vehicle and parts dealers and gasoline stations, retail sales also dropped 0.1 percent m-o-m in July.

In y-o-y terms, Canadian retail sales jumped 1.2 percent in July, accelerating from +1.0 percent in July.