Canadian consumers continued spending in June, but the country’s longest retail-sales growth streak in years may have ended one month later.
Retail sales increased 0.6% in June to a seasonally adjusted C$74.28 billion, according to Statistics Canada. That exceeded economists’ expectations for a 0.4% gain and marked the sixth consecutive monthly increase.
The growth was also broader than in some earlier months. Sales advanced in seven of the nine retail categories tracked by the agency, led by general merchandise stores and clothing, clothing accessories, shoes, jewelry, luggage and leather-goods retailers.
Spending excluding gasoline stations and motor-vehicle dealers—the measure that more closely reflects everyday purchases—rose for a third consecutive month. That suggests June’s strength was not simply the result of consumers paying more for fuel or purchasing expensive vehicles.
The warning came in Statistics Canada’s preliminary estimate for July, which indicated that total retail sales fell approximately 0.8%. If confirmed, it would be the first monthly decline since late 2025 and would end the six-month expansion.
The timing matters because household spending has been one of the Canadian economy’s strongest supports. A recovering housing market and improving labor conditions helped consumers continue purchasing goods despite U.S. trade tensions, higher energy costs and slower wage growth.
Some economists believe households may have maintained that spending by saving less or taking on additional debt. That becomes harder to sustain if wage growth remains weak while essential expenses absorb a greater share of household income.
The June increase points to solid consumer activity during the second quarter and supports estimates that Canada’s economy expanded at its fastest pace in roughly three years. The preliminary July decline, however, suggests that momentum may not carry fully into the third quarter.
For retailers, the question is whether July was a temporary pause after six unusually strong months or the beginning of a broader consumer pullback. Statistics Canada will revise the preliminary estimate when it publishes the complete July report.
JBizNews Desk | Ottawa
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