Canadian Economic Data Preview: June Retail Sales and July Leading Indicators
Tomorrow morning Statistics Canada will release June Retail Sales and July Leading Indicators at 8:30am EDT.
Retail Sales are expected to edge up 0.4% in June, the same as previous. The surprising 1% drop in New Motor Vehicle sales reported earlier this month is expected to provide a drag on total sales although strong gasoline prices are expected to provide a balancing boost. However the slowing domestic economy suggests Retail Sales could still disappoint.
Meanwhile excluding Autos, Retail Sales are expected to increase 0.6% from 0.4% prior.
July Leading Indicators are expected to rise 0.1% in July following the flat (0%) report last month. Stocks are expected to provide a drag, as is Manufacturing, though the latter could surprise on the upside given the unexpected 2.1% growth reported for June Shipments last week.
Continued growth in consumer spending suggests that economic activity is still expanding in spite of a cooldown in the housing sector and the twin challenges of a strong currency and a US slowdown faced by the manufacturing sector.