Retail sales rose 0.6% in July, Statistics Canada says

Retail sales in Canada rose 0.6% in July to $52.9 billion, helped by higher sales at motor vehicle and parts dealers and gasoline stations, a new report from Statistics Canada said.

Economists had expected an increase of 1.0% for the month, according to financial markets data firm Refinitiv.

“Overall, the recovery in total retail sales has been V-shaped, with sales in June and July, respectively, rebounding from the record low observed in April,” StatCan said in a Sept. 18 statement.

According to StatCan, sales were up in six of 11 subsectors in July with the motor vehicle and parts dealers subsector contributing the most to the increase with a 3.3% increase. Sales at gasoline stations rose 6.1%.

However, the agency said core retail sales, which exclude those two subsectors, fell 1.2%.

Sales at building material and garden equipment and supplies dealers fell 11.6%, while sales at food and beverage stores dropped 2.1%.

Retail sales in volume terms were up 0.4% in July.

By province, sales rose in British Columbia (+2.1%) on higher sales at gasoline stations. Manitoba (+1.9%) and Alberta (+1.2%) also posted gains in July, led by higher sales at motor vehicle and parts dealers, StatCan said. Sales in Ontario increased 0.3% as the gains posted in the census metropolitan area (CMA) of Toronto (+3.9%), which proceeded with later stages of economic reopening in late June, offset declines in the rest of the province. And retail sales in Quebec edged up 0.1% in July following two months of strong gains, while sales were flat in the CMA of Montréal (-0.0%).