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Jocelyn Paquet, analyst at National Bank of Canada, explained that retail sales in July matched expectations only thanks to a rise in gasoline station receipts.

Key Quotes:

“Canadian retail sales matched consensus expectations in July, advancing 0.3% m/m in nominal terms to an all-time high of C$50.9 billion. The prior month’s data was revised up from -0.2% to -0.1%.”

“Excluding autos, retail sales rose 0.9%, three ticks more than the median forecast of economists.”

“With the price effect removed, retail sales edged down 0.1% countrywide.”

“Canadian retail sales came in line with consensus expectations in July but only thanks to a rise in gasoline station receipts, the latter caused by a 1.9% surge in prices. Without that category, retail spending was up just 0.1% in the month, hampered by a disappointing print in the auto segment. There were, on the other hand, some bright spots in the report. Sales of electronics registered yet another solid month and are now up 10.2% on their level a year ago.