This decline was the first in six months and was attributed to a combination of factors, including high interest rates, inflation, and a slowdown in consumer spending. The decline in retail sales was particularly pronounced in the new car dealer sector, which saw a 1.8 per cent drop in sales. This decline was attributed to a combination of factors, including high interest rates, a decrease in consumer confidence, and a shift in consumer preferences towards electric vehicles.

The Bank of Canada’s decision to cut interest rates was driven by a confluence of factors, including a weakening economy, rising inflation, and a desire to stimulate economic growth. The central bank’s mandate is to maintain price stability and promote sustainable economic growth. The central bank’s decision to cut interest rates was met with mixed reactions from the public and financial markets.

This suggests that the underlying strength in consumer spending remains intact. The report also highlighted that the core retail sales growth was driven by a strong performance in the grocery and food services sector. This sector saw a 1.1 per cent increase in June, driven by a surge in demand for food and beverages. This surge was attributed to a combination of factors, including the ongoing pandemic, the desire for convenience, and the rise of online grocery shopping.