The flash estimate showing a solid rise in retail sales in June, paired with the recent rebound in consumer confidence, suggests the decline in sales in May was more a reflection of demand normalising as tariff front-running came to an end, rather than the start of a marked downturn in consumer spending. This is one reason why we expect the Bank of Canada to keep interest rates unchanged next week, as policymakers await greater clarity on the future of trading terms with the US.
Subscriber content
Read this in full, free
Start a free trial and use one of your 10 free starter credits to unlock this piece.
