According to Statistics Canada, retail sales in Canada grew by 0.1% in June, falling short of the 0.3% growth predicted by economists.
As noted by Reuters, “Sales at general merchandise stores expanded by 2.9 per cent, while clothing and accessories retailers posted a 2.7 percent gain. Sales at building material, garden equipment and supplies dealers rose 2.2 per cent.”
However, sales fell by 1.4% at motor vehicle and parts dealers. Gas station sales fell 1.8%.
More interest rate hikes expected
Despite the low retail sales growth, expectations are that there will still be more interest rate hikes in the near future. The most common prediction is for a hike in October.
Of course, what’s being missed in all the discussion of the economy is how our growth is based on a foundation of record debt levels. Since that debt was incurred under very low interest rates, subsequent rate hikes could have a serious negative impact on the economy. Combined with growing government restrictions and regulations, there is good reason to be quite concerned about the long-term future of the Canadian economy.