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Canada May Retails Post Biggest Fall In A Yr, Jun Flash Down Too

CANADA DATA
  • May retail sales -0.8% with declines in every major category except autos, StatsCan says Friday. Food/beverage led decline at -1.9%.
  • June flash sales -0.3%, no detail on the drivers of that move.
  • YOY sales +1.0% and overall sales trend has been flat for the last two years, perhaps reflecting drag of BOC rate increases. Further weakness expected as mortgage holders refinance at higher rates and lose discretionary income, even as BOC has begun cutting its overnight benchmark.
  • Separate StatsCan report on monthly credit aggregates shows YOY mortgage credit growth remains around the slowest pace in decades, and non-mortgage loan debt fell CAD1.3 billion (-0.2%) in May, the first decline since March 2023.
  • "Non-mortgage loans with chartered banks declined $6.7 billion (-1.0%), the largest decrease since July 2020. Bankers' acceptances dropped $32.2 billion (-24.4%) to $100.0 billion in May 2024, representing 49.7% of the peak level from September 2023, ahead of the cessation of the Canadian Dollar Offered Rate's publication in June 2024."
MNI Ottawa Bureau | +1 613-314-9647 | greg.quinn@marketnews.com
MNI Ottawa Bureau | +1 613-314-9647 | greg.quinn@marketnews.com

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