Canadian Retail Sales, July 2010 Release

Date: September 21, 2010

Canadian Retail Sales, July 2010 Release

Source: Statistics Canada

Link to Release: http://www.statcan.gc.ca/daily-quotidien/100922/dq100922a-eng.htm

Summary: The dollar value of retail sales fell 0.1 per cent in July after increasing 0.1 per cent in June. Five of the eleven major retail sub-sectors experienced declines. Declines in sales for housing-related goods were notable, with an 8.4 per cent dip in sales at furniture and home furnishing stores and the value of building and garden materials sales was down 2.3 percent. Regionally, Ontario experienced a 0.3 per cent drop in the value of sales, and BC a decline of 0.4 per cent.

Analysis: Retail sales generally exhibit some volatility on a month-over-month basis. Sales remain well-above last year’s levels in Canada and Ontario, but the annual growth rate in retail sales has edged lower. Economic recovery was initially driven by consumer spending spurred on by low borrowing costs. Home sales were a key driver in this regard, which in turn drove a substantial amount of retail spending. As interest rates have started to rise, it makes sense that growth in some consumer-driven sectors has slowed. Because personal expenditure has historically accounted for approximately two-thirds of Canadian Gross Domestic Product (GDP), it makes sense that GDP growth is expected to be more subdued moving forward.

Source: Toronto Real Estate Board

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