{"id":155783,"date":"2019-09-20T08:10:48","date_gmt":"2019-09-20T12:10:48","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=155783"},"modified":"2019-09-20T07:30:42","modified_gmt":"2019-09-20T11:30:42","slug":"canada-retail-sales-to-rise-in-july","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2019\/09\/canada-retail-sales-to-rise-in-july\/","title":{"rendered":"Canada Retail Sales To Rise In July"},"content":{"rendered":"
September 20, 2019<\/div>
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By <\/strong>Orbex<\/strong><\/a><\/p>\n

Canada\u2019s monthly retail sales report for July will be coming out later today.<\/p>\n

According to the economists polled, Canada\u2019s retail sales are forecast to rise by 0.8% on the month. Meanwhile, core retail sales, excluding autos are to rise 0.4% according to estimates<\/strong>.<\/p>\n

The forecasts for July show that economists expect a rebound in retail sales figures. The primary reason behind this view is the higher gasoline prices in Canada during the period.<\/p>\n

Auto sales have also risen during the month which could contribute to a better headline print compared to the previous month.<\/p>\n

The retail sales figures will also mark the start of the third quarter.<\/p>

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In the whole of the second quarter, Canada\u2019s retail sales rose 1.5% on a year over year and non-seasonally adjusted basis. Retail sales slowed in the second quarter of this year, following a 1.8% increase in the first quarter.<\/p>\n

\"Canada
Canada Retail Sales, June 2019<\/em><\/figcaption><\/figure>\n

The retail sales report is unlikely to influence the Bank of Canada policymakers. But it could provide a glimpse into the spending and savings pattern among households.<\/strong><\/p>\n

The BoC is one of the few central banks that are yet to cut interest rates.<\/p>\n

Canada\u2019s economy has been through\u00a0somewhat\u00a0of a\u00a0swing. The data for the first half showed a weaker pace of growth. However, growth is\u00a0rising as forecast by the Bank of Canada.<\/p>\n

Gasoline & Auto Sales to Push Retail Sales Up<\/strong><\/h2>\n

During July, two main components showed some strong gains. These were gasoline and auto sales.<\/p>\n

Gasoline prices were seen rising as much as 4% on a month over month basis, alongside an increase in the auto sales during the period. However, there could still be some downside risks.<\/strong><\/p>\n

That said, various other related economic indicators show that consumer spending might have increased. Canada\u2019s labor market, as is the case with many other economies, continues to be a strong point.<\/p>\n

Although the labor market report has been somewhat volatile, it has been generally trending higher. Canada\u2019s unemployment rate ticked higher during July. The unemployment rate rose from 5.5% to 5.7% during the month.<\/p>\n

Meanwhile, the economy lost 2,200 jobs during the period. The increase in the unemployment rate came amid more people looking for work. This is considered to be a good sign for the economy.<\/p>\n

Due to the fact that both the unemployment rate and jobs fell during the month, there is a possibility that while retail sales will increase. There is a good chance that the retail sales figures for July could come at a slower pace.<\/p>\n

With interest rates being stable and inflation fairly close to the BoC\u2019s 2% inflation target rate, there is a chance that\u00a0spending among consumers<\/a>\u00a0will increase. This will be seen on how the retail sales data will come out later today.<\/p>\n

The BoC is not in a rush<\/a>\u00a0to lower interest rates. However, many expect that the next move will be a rate cut.<\/p>\n

For the moment, the July retail sales report will perhaps give some early clues into how the third-quarter GDP in Canada is shaping up to be.<\/p>\n

By <\/strong>Orbex<\/strong><\/a><\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

By Orbex Canada\u2019s monthly retail sales report for July will be coming out later today. According to the economists polled, Canada\u2019s retail sales are forecast to rise by 0.8% on the month. Meanwhile, core retail sales, excluding autos are to rise 0.4% according to estimates. The forecasts for July show that economists expect a rebound […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-155783","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/155783","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=155783"}],"version-history":[{"count":2,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/155783\/revisions"}],"predecessor-version":[{"id":155798,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/155783\/revisions\/155798"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=155783"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=155783"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=155783"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}