According to Jinshi.com, Canada's retail sales in July were stronger than expected, and the initial value of August showed that retail sales rose in August, which means that transaction volume increased again.
Michael Davenport, an analyst at Oxford Economics, expects that despite the Bank of Canada’s recent rate cut, the lagged impact of past rate hikes will continue to weigh on highly indebted households.
He doesn’t expect consumer spending to pick up meaningfully until interest rates fall sharply in the second half of 2025 and the labor market begins to improve.
