MNI DATA BRIEF: Canada July Flash Factory Sales -1.2%

Canadian factory sales fell 1.2% in July, according to a flash government estimate Tuesday, adding to evidence the third quarter started on a sour note in contrast to the central bank's view of a strong rebound.

Statistics Canada's estimate marks the third decline in four months, following a 2.1% gain in June and declines in April and May. The July flash figure showed declines led by wood products and energy, and is based on a 69% response rate versus 93% in finalized reports over the past year.

Other figures for July show a healthy job gain and a surprising 1.7% decline in flash retail sales at a time of new fears around Covid variants. The BOC is counting on a consumer-led recovery to boost the economy in the second half of the year, one reason it's tapered QE three times and investors predict it may move to end net purchases around yearend. (See: BOC to End Active QE Before Rate Hike-Ex-Adviser)

Other reports today showed a 0.4% decline in 2Q business profits and flat R&D spending intentions for this year.