Date: September 22, 2009
Canadian Retail Sales, July 2009 Release

Source: Statistics Canada

Link to Release:
http://www.statcan.gc.ca/daily-quotidien/090922/dq090922a-eng.htm

Summary:
July retail sales declined, on a seasonally adjusted basis, by 0.6 per
cent compared to June. The decline was driven by a 3.4 per cent drop in
gasoline sales, representing lower gas prices this year versus last. While retail
sales were down in July, it is important to note that gains have been reported in
five out of seven months this year. The retail sector in Ontario performed better
than Canada as a whole, posting a more moderate 0.3 per cent decline. Sales
of many housing-related goods, including furniture, building and outdoor home
supplies, increased in July.

Analysis:
Retail sales are an important indicator when considering the
trajectory of economic recovery in Canada. Over half of Canada’s gross
domestic product (GDP) is driven by personal consumption. With this in mind,
the July retail sales release is not the best news we could have hoped for, but it
is only one month worth of data. The fact that retail sales have increased in the
majority of months reported so far this year after a steep drop-off at the end of
2008 suggests that the retail sector is improving and is having a positive effect
on the economy. A lot of growth still must occur before we revisit the level of
retail spending experienced in the summer and fall of 2008. The resurgent
housing market and improving consumer confidence will continue to help the
retail sector moving forward.

Source: Statistics Canada
Canadian and Ontario Retail Sales