Canada Retail Sales Rebound in August

Retail sales in Canada are expected to have jumped by 1% from the previous month in August of 2025, according to a preliminary estimate, reflecting the second sharpest increase in turnover since the start of the year. Such an increase would erase the 0.8% decline in July, which was the second-largest drop this year, and aligned with market estimates. The large changes in retail aggregates prevailed as tariffs from the US continued to cause uncertainty for households and their spending patterns. Core retail sales fell 1.2% in July amid declines for food and beverage retailers (-1.3%), clothing and accessories (-2.9%), sporting goods (-1.2%), general merchandise retailers (-0.8%), and building materials (2.1%). In turn, turnover was slightly higher for motor vehicles and parts (0.2%). From the previous year, retail sales rose by 4%, the least since the start of the year.