Canada: Retail sales expected to rise a modest 0.1% in July – BMO CM

Canadian retail sales are expected to rise a modest 0.1% in July, according to Benjamin Reitzes, Canadian Rates & Macro Strategist at BMO Capital Markets.

Key Quotes

“A rare drop in auto sales (they’re on track for a record year) will likely weigh on overall sales, while activity ex. autos looks to be up a firmer 0.4%. And, despite an increase in seasonallyadjusted gasoline prices supporting the headline, underlying sales held firm with an anticipated 0.4% gain. Consumer spending has been consistently solid for the past two years, and continued strong job gains point to ongoing strength. We have yet to see any signs that slowing in the Ontario housing market has dampened related activity, but that remains a downside risk. With goods prices rising modestly in the month aided by gasoline prices, look for volumes to struggle to rise meaningfully.”