FX.co ★ Canada Retail Sales Stall

In October 2025, it is anticipated that retail sales in Canada will remain steady compared to the previous month, according to a preliminary estimate. This continuity follows a 0.7% decline in September, aligning with earlier projections, and contrasts the 1% growth witnessed in August. The shift in consumer spending patterns is largely impacted by uncertainties surrounding US trade relations and the Bank of Canada's interest rate prospects. Notably, a significant reduction in retail turnover was observed among motor vehicles and parts dealers, declining by 2.9%, with new car dealerships experiencing an even sharper drop of 3.6%. Additionally, sales decreased for building material and garden equipment dealers by 2%, and merchandise retailers saw a slight dip of 0.5%. On the other hand, food and beverage retailers experienced a 0.8% increase in sales, while gasoline stations saw a 1.9% rise in turnover, despite a 1% decrease in volume. Compared to the previous year, retail turnover in Canada increased by 3.4%.