Retail sales fell in June as new car sales slump

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Retail sales shrank 0.3 per cent to $65.7 billion in June, but an early estimate points to 0.6 per cent growth in July, Statistics Canada said on Friday.

The sales decline in June was driven by reduced demand at motor vehicle and parts dealers, the agency said.

Sales at new car dealers plunged 2.9 per cent and there was a 0.6 per cent slump at used car dealers. Sales at gas stations and fuel vendors were down 0.5 per cent.

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Core sales, however, climbed 0.4 per cent due to higher sales at supermarkets and other grocery retailers. The biggest decline in core sales was the 0.8 per cent drop from retailers of sporting goods, hobbies, musical instruments, books and miscellaneous items.

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Among the provinces, Ontario retailers showed the biggest pullback in sales, falling 0.4 per cent, although sales were up 0.3 per cent in the metropolitan Toronto area.

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