Retail sales in Canada fell 0.5% in September from August as rising interest rates dampen
consumer spending across the country.
September’s decline follows a better-than-expected 0.7% rise in retail sales in August,
according to Statistics Canada.
The August gain was stronger than the 0.2% increase expected by economists and ahead of
preliminary estimates of a 0.4% advance. In volume terms, August retail sales rose 1.1%.
Statistics Canada suggested that there was a boost to Canadians’ discretionary spending in
August from falling gasoline prices, but it was short-lived as the Bank of Canada continues to
hike interest rates to quell inflation.
Other economic data shows that the Canadian economy is slowing down after a strong first half
to the year.
August retail sales rose in six of 11 categories, representing 65% of total retail trade.
