Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
Canadian retail sales surpassed their pre-pandemic level in June as shoppers returned to auto dealerships and clothing stores they shunned during the Covid-19 lockdown, and the government statistics agency said sales likely rose again in July.
Sales rose a record 24% in June to CAD53 billion, and were 1.3% higher than they were in February before the pandemic took hold. Statistics Canada's report Friday from Ottawa also gave a flash estimate for July sales to rise another 0.7%, with 91% of shops back in business.
The report was consistent with a steady re-opening with sales rising in every category and province, led by a 53% jump at auto dealers and a 142% jump in the smaller receipts at clothing stores. Sales excluding autos were up 16% on the month, another sign that broad-based spending gains may continue as long as there isn't a second wave of coronavirus.
Spending power saw another boost yesterday with the government extending relief checks by another four weeks and offering relaxed qualification rules for traditional unemployment benefits, measures costing almost CAD40 billion.
The prospect for big spending gains from here is muted amid near-record unemployment and the coming end of six-month deferments on mortgage payments sought by almost a million Canadians. Sales over the second quarter were still down 13%, another sign of what the BOC has said will be a years-long and inconsistent recovery.
"The months ahead are likely to reveal a dramatic slowdown in momentum with the potential for some backsliding," CIBC senior economist Royce Mendes wrote in a research note.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.