Retail sales unexpectedly slide

Canadian retail sales fell by 0.6% in July to $34.2 billion, following a 1.0% gain in June, the Statistic Canada reported Tuesday.

Sales were weak across most sectors with five out of eight reporting declines in July. The automotive and the food & beverage sectors, which account for close to 60% of sales each month, fell by 1.0% and 1.5%, respectively.

Excluding motor vehicles, sales were down 0.8% in July. This follows an upwardly revised figure in June to 1.1%.

''Most of the decline reflected lower prices at gasoline stations. In volume terms, retail sales edged down 0.1%. Retail sales have risen in five of the first seven months of 2009, following large drops at the end of 2008,'' a report by Statistic Canada showed.

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