Canadian retail sales surged 4.2% in June from May, led by a strong rebound in demand for clothing and accessories, while July retail sales likely fell 1.7%, data showed on Friday.
The June gain was slightly below the average analyst estimate of 4.4%, Statistics Canada data showed. Excluding motor vehicles and parts, retail sales were up 4.7%, just beating expectations of 4.6%.
“There’s nothing like some retail therapy to cure the post-lockdown blues,” Royce Mendes, senior economist at CIBC Capital Markets, said in a note to clients.
“It’s very possible that spending was redirected to services as that sector more fully reopened,” said Benjamin Reitzes, Canadian rates and macro strategist at BMO Capital Markets.
Clothing and accessory sales spiked 49.1% in June, with sporting good sales up 27.9% and home goods up 23.2%. Sales of new cars rose by 3.3% and used cars jumped 3.0%.