Canadian retail sales likely to have rebounded in July

Canada’s retail sales data for the month of July is set to release this week. According to a TD Economics research report, retail sales are likely to have rebounded by rising 0.9 percent sequentially. Motor vehicles are expected to have driven the strong rise in preliminary auto sales, which should benefit from the recent rebound in the housing market and consumer sentiment.

Sales at gasoline stations are also expected to have provided a tailwind on higher prices, while core sales are expected to have seen more modest gains on the heels of a 1.7 percent rise in June – the largest since 2016.

“Retail volumes should rise by roughly 0.5 percent owing to a sizeable increase in consumer goods prices, which will provide an anchor to Q3 household consumption after the soft performance in Q2”, added TD Economics.