**Canada’s retail sales edged up slightly in June, boosted by a rebound in auto sales, but economists warned that the underlying trend remains weak and that the economy is facing headwinds.**.
According to Statistics Canada, retail sales rose 0.6% in June to C$61.1 billion, beating market expectations of a 0.3% increase. The gain was driven by a 3.7% surge in sales at motor vehicle and parts dealers, which had declined sharply in May..
Excluding the volatile auto sector, retail sales were flat in June, suggesting that consumer spending is still struggling to gain traction. On a year-over-year basis, retail sales were up just 2.2%, the slowest pace of growth since February 2021..
The Bank of Canada (BoC) has raised interest rates four times this year in an effort to tame inflation, which is running at a 40-year high. The central bank is expected to raise rates again at its next meeting in September, which could further weigh on consumer spending..
Economists said that the June retail sales data is a mixed bag. While the headline number is positive, the underlying trend is still weak..
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