Canada: Retail sales miss the mark in June – TDE

Admir Kolaj, Economic Analyst at TD Economics, notes that the Canadian retail sales fell 0.1% (m/m) in June, following a downwardly revised flat reading last month.

Key Quotes

“Headline missed the mark completely, coming in significantly below the consensus view for a robust gain of 0.5%. In volume terms it was an even weaker story, as sales fell 0.3% once stripping away price effects.

The details of the report were broadly disappointing as sales fell in 7 of the 11 subsectors, representing 54% of retail trade. The headline was driven down by weaker sales at food and beverage (-1.5%), building material and garden equipment (-1.9%) – the third decline in four months, and clothing and clothing accessories (-1.7%) stores.

Stronger sales at gasoline stations (+1.8%), electronics and appliance stores (+0.8%), and a healthy rebound at motor vehicles and parts dealers (+2%) after three consecutive monthly declines, were not enough to sway the pendulum in favour of a positive print.

When excluding sales at auto dealers and gasoline stations (two volatile categories), core sales were down an even weaker -1.2% on the month.

Sales performance was evenly split on a regional basis. The biggest declines were recorded in Nova Scotia and Quebec – both down -0.8% – and Alberta (-0.4%). Meanwhile, sales in Canada's biggest province – Ontario – saw no growth from the month prior. On the other hand, large rebounds were recorded in Saskatchewan (+2.1%) and New Brunswick (+1.8%).”