OTTAWA – Statistics Canada says retail sales rose 0.5 per cent in July to $43.3 billion, helped by higher sales at motor vehicle and parts dealers and clothing stores.
But excluding motor vehicle and parts dealers, retail sales were flat for the month as other areas saw retreats. The monthly data disappointed economists who were expecting more from consumers.
“This adds to our concern that the economy’s rebound from the mild recession in the first half of the year will be lacklustre,” experts at Capital Economics said.
“More was expected from consumers in supporting a return to growth,” Nick Exarhos, an economist at CIBC World Markets, said. “The data suggests that spending isn’t carrying as much momentum into the start of the quarter.”
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Experts are banking on the economy to post strong growth in the third quarter, which runs between July and the end of the current month, in order to meet full-year growth forecasts.
Sales were up in six of 11 subsectors, representing more than half per cent of retail trade. Clothing and clothing accessories stores gained 2.5 per cent.
— With files from Global News
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