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Car dealers saw sales drop in June amid technical glitch

Click to play video: 'July inflation decelerates as car prices shift into reverse: StatCan'
July inflation decelerates as car prices shift into reverse: StatCan
The annual rate of inflation cooled to 2.5 per cent in July, the slowest pace for price growth since March 2021, Statistics Canada said Tuesday. According to the agency, the deceleration in price hikes was “broad-based” last month, with lower prices for travel tours, passenger vehicles and electricity. Anne Gaviola has more on why this relief on paper may not feel like much of a reprieve in real-life and how this paves the way for another Bank of Canada interest rate cut in early September – Aug 20, 2024

Statistics Canada says retail sales fell 0.3 per cent to $65.7 billion in June as sales dropped at new car dealers.

Core retail sales — which exclude gasoline stations and fuel vendors and motor vehicle and parts dealers — rose 0.4 per cent in June.

Sales at motor vehicle and parts dealers fell 2.1 per cent as sales at new car dealers dropped 2.9 per cent and used car dealers saw a decline of 0.6 per cent.

CIBC senior economist Katherine Judge said in a note to clients Friday that sales at many dealerships across Canada and the United States were likely stymied by a cyberattack in the last week of June disrupting a critical financing software.

Click to play video: 'Car dealership cyberattacks force many Canada, U.S. companies to use pen and paper'
Car dealership cyberattacks force many Canada, U.S. companies to use pen and paper

Meanwhile, food and beverage retailers reported sales increased 1.2 per cent as supermarkets and other grocery retailers, except convenience retailers, gained 1.8 per cent.

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In volume terms, overall retail sales increased 0.1 per cent in June.

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Looking ahead, Statistics Canada said its advance estimate of retail sales for July pointed to an increase of 0.6 per cent for the month, but cautioned the figure would be revised.

— with files from Global News

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