Statistics Canada reports retail sales up 0.6 per cent in June at $74.3B

Canadian retail sales increased by 0.6 percent to $74.3 billion in June, according to Statistics Canada. However, the agency's estimate for the following month indicated a decline of 0.8 percent, suggesting the gain was short-lived. CIBC senior economist Andrew Grantham noted that retail sales surged at the end of the second quarter but showed slight weakness in the beginning of the third.

Despite these fluctuations, the underlying trend still appears to be gradually upward, he added. For the month of June, sales grew in seven out of nine subsectors, including a notable 2.7 percent increase at general merchandise stores and a 3.1 percent rise in clothing and clothing accessories retailers. Conversely, sales at food and beverage retailers decreased by 0.4 percent, while those at supermarkets and other grocery retailers saw a 0.6 percent drop.

Core retail sales, excluding gasoline stations and fuel vendors, along with motor vehicle and parts dealers, experienced a 1.2 percent increase in June. Motor vehicle and parts dealers saw a 1 percent sales increase, driven by a 1.5 percent rise at new car dealers, while gasoline stations and fuel vendors faced a 4.1 percent decline.

Overall retail sales in volume terms rose by 1.5 percent in June. TD Bank economist Maria Solovieva described it as another solid month for retail sales, with core spending and real activity both rising for the second consecutive time.