July retail sales 'positive surprise' but need more rate cuts to persist: analysts

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July retail sales 'positive surprise' but need more rate cuts to persist: analysts
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Retail sales edged up in July, but economists say it will take further interest rate cuts to really spark lasting activity. Statistics Canada said Friday that retail sales rose 0.9 per cent to $66.4 billion in July, helped by stronger new car sales.

Retail sales edged up in July, but economists say it will take further interest rate cuts to really spark lasting activity.

"It’s rare to see a positive surprise from Canadian consumers these days, but the July retail sales report delivered," Shelly Kaushik, an economist with BMO Capital Markets, said in a note to investors. That was reflected in core retail sales, which exclude gasoline stations and fuel vendors and motor vehicle and parts dealers. They rose 0.6 per cent in July.

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