REPORT: Retail Sales In Canada Drop 1.2%

More weakness seen in the Canadian economy.

The latest retail sales numbers are adding to the concern about underlying weakness in the Canadian economy.

According to BNN Bloomberg, “The consumer price index recorded an annual pace of 2.2 per cent in May, unchanged from April and well below economist expectations for a 2.6 per cent gain, Statistics Canada said Friday. In a separate report, the Ottawa-based agency said retailers recorded a 1.2 per cent sales drop in April, also unexpected. The reports — which come on the heels of other disappointing data — raise questions about the underlying strength of the economy and could cast some doubt about how quickly the Bank of Canada proceeds with future rate hikes.”

While monthly data is notoriously fickle, it’s the trend that matters. And the trend is not looking good for Canada’s economy:

“Yet, the recent pattern has been one of weakness across the economy — which could be a concern. The poor inflation and retail sales data have come on the back of weak manufacturing sales and employment data — all within the context of growing trade worries.”

What makes all of this so absurd is that the government could easily be fixing many of these problems. Rescinding the carbon tax, cutting regulations for businesses, and reducing provincial trade barriers would give our economy a strong boost.

Yet, the Trudeau government refuses to do so, and is instead doubling down on the same failed policies that have pushed our economy into such a position of weakness.

Spencer Fernando