MNI 5 THINGS: Canada July Retail Sales +0.3%, But Volumes Down>

By Yali N'Diaye

     OTTAWA (MNI) - The following are the key points from the July data 

on Canadian retail sales released Friday by Statistics Canada: 

     - PRICE EFFECT 

     Retail sales rose 0.3% in July, as expected by analysts in a MNI 

survey. Excluding autos and parts, sales increased 0.9%, more than the 

0.6% gain expected by analysts. June's estimate was revised slightly up 

to -0.1% from -0.2%. Details, however, showed that sales gains over the 

month owed much to a price effect. 

     - REAL SALES CONTRACTING 

     If not for higher prices, sales actually contracted 0.1% in July, 

following a 0.2% decrease in June, indicating the nominal gains in July 

were mostly a price story. On a year-over-year basis, however, real 

sales continued to grow at a steady pace of 0.7%. 

     - FOOD, GASOLINE LEAD 

     Nominal sales expanded in 8 of 11 subsectors, representing 54.8% of 

retail trade. Gasoline stations receipts rose 1.9% on the month, erasing 

June's 1.9% advance, owing to higher prices at the pump. Real gasoline 

sales were flat on the month. The other large upward contributor was the 

food and beverage sector, with sales up 1.3% on the month, as volumes 

rose 1.1%. 

     - AUTOS WEIGH 

     On the other hand, the auto sector was a drag on retail performance 

in July, with sales down 1.4% due to lower volumes (-1.9%), following a 

0.6% decrease in June. Health and personal care (-0.8%) and general 

merchandise stores (-0.2%) were the other two subsectors recording lower 

sales. 

     - WIDESPREAD REGIONAL GAINS 

     On a regional basis, gains were widespread, with sales increasing 

in eight provinces. Quebec recorded the largest increase in dollar 

terms. 

--MNI Ottawa Bureau; email: yali.ndiaye@marketnews.com 

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