StatCan says auto sales helped lift retail sales up one per cent to $70.4B in August
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OTTAWA – Canadian retail sales rose 1.0 per cent to $70.4 billion in August, helped by gains in the auto sector, Statistics Canada said Thursday.
However, the agency said its preliminary estimate for September suggests retail sales fell 0.7 per cent for that month, though that early figure will be updated.
BMO senior economist Shelly Kaushik said the drop in September could look even softer in volume terms because goods prices jumped in the month.
“Despite a decent August report, the disappointing September flash highlights the underlying weakness in Canadian retail spending,” Kaushik wrote in a report.
For August, Statistics Canada says retail sales were up in six of nine subsectors as sales at motor vehicle and parts dealers rose 1.8 per cent.
Sales at new car dealers gained 2.3 per cent for the month, while used car dealers rose 1.5 per cent.
Core retail sales — which exclude gasoline stations and fuel vendors and motor vehicle and parts dealers — rose 1.1 per cent in August.
The increase came as sales at general merchandise retailers gained 2.4 per cent, while clothing, clothing accessories, shoes, jewelry, luggage and leather goods retailers saw a 3.2 per cent for the month.
Sales at building material and garden equipment and supplies dealers fell 0.3 per cent.
In volume terms, overall retail sales increased 1.0 per cent in August.
The report comes ahead of the Bank of Canada’s interest rate decision next week.
The central bank cut its key interest rate in September to 2.5 per cent.
Most economists expect it to cut its policy rate again next week, but a stronger than expected inflation report for September may raise issues for the bank.
This report by The Canadian Press was first published Oct. 23, 2025.