Economists expected a 0.5 per cent gain in retail sales, instead the economic sectore hit an unexpected decline in June or 0.1 per cent. This strengthens the idea that constricted growth in the second quarter took a toll on consumers.
A number of sectors were impacted with a decrease in sales, specifically food and beverage which fell -1.5 per cent. The number of sales at beer, wine and liquor stores were down 4.7 per cent along with supermarkets and grocery stores, falling 0.9 per cent in June. Lastly, general merchandise stores found a decrease in June of 1.5 per cent.
March 2016 covers Rainbow Foods in Ottawa, shared that they normally would be facing a decrease in sales during the summer months, so these recorded have not had a significant impact on their sales.
“It just suggests that maybe the Canadian consumer is growing a bit tired of carrying the burden of growth,” said David Watt, chief economist at HSBC. Regardless economists are staying hopeful for the consumer, “With Ottawa sending out the first of the Child Care Benefit checks in July, there’s reason to be optimistic on the second half of the year,” mentions Nick Exarhos, economist at CIBC.
The Alberta wildfires, and oil production are still looking to possible be the reason for the struggle in grown lately, but things expected to look more positive in third quarter.
