Canada retail sales fall in August, closing off a weak summer

Canadian retailers recorded another weak month in August, ending what was a lacklustre summer for the sector.

Retailers saw receipts decline 0.1% in August, falling for a second time in three months, Statistics Canada reported. Economists had been anticipating a 0.3% gain.

The nation's retailers have seen no growth in sales since the gauge hit a 2018-high in May, a summer pause that is consistent a broader trend of slowing consumer spending this year as households cope with higher borrowing costs.

Seven of 11 subsectors recorded declines in August, representing 52% of retail trade, the statistics agency said on Friday from Ottawa. In volume terms, sales decreased 0.3%.

Falling sales at gasoline stations led the decline, offsetting a 0.8% gain in the sale of cars and auto parts. Excluding the auto sector, retail sales fell 0.4%.