FX.co ★ Canada Retail Sales Rebound in August

Retail sales in Canada are anticipated to have increased by 1% in August 2025 compared to the previous month, based on preliminary estimates. This represents the second most significant rise in sales since the beginning of the year and would offset the 0.8% decline observed in July, which was also the second-largest drop recorded this year and was consistent with market expectations. The volatility in retail figures persists as ongoing tariffs from the United States continue to create uncertainty for consumer spending behaviors. In July, core retail sales decreased by 1.2%, particularly in sectors such as food and beverage (-1.3%), clothing and accessories (-2.9%), sporting goods (-1.2%), general merchandise (-0.8%), and building materials (2.1%). Conversely, sales saw a modest increase for motor vehicles and parts, with a 0.2% rise. On an annual basis, retail sales climbed by 4%, marking the slowest growth since the year's start.