Canada retail sales jump

Canada’s retail sales rose 4.2 per cent in May to June, led by a strong jump in demand for clothing and accessories, while July retail sales fell 1.7 per cent, data showed on Friday.

Data from Statistics Canada showed June’s profit was slightly below the average analyst estimate of 4.4 per cent. Excluding motor vehicles and parts, retail sales grew 4.7 per cent, beating expectations of 4.6 per cent.

Statscan said sales increased in eight of the 11 sub-sectors, representing 69.5 per cent of retail trade, as Covid-19 restrictions were eased and Canadians turned back to non-essential stores.

“There is nothing like some retail therapy to cure the post-lockdown blues,” Royce Mendes, senior economist at CIBC Capital Markets, said in a note to clients.

“The general rebound after the lockdown reflects Canadians’ willingness to spend and, more broadly, how quickly the economy can bounce back when Covid cases are low,” he said.