UK retail sales fall in July while Canadian GDP shows Q2 rebound

Retail sales in Great Britain fell by 0.5% in July, according to the Office for National Statistics. This contraction follows a 0.7% rise in June and was driven largely by a 1.3% drop in non-food sales, particularly in clothing and footwear. Analysts suggest the decline resulted from retailers pulling summer promotions forward into June and extreme heatwaves in July that discouraged high street footfall. However, food and drink sales saw a 0.5% increase, buoyed by warm weather and demand related to the World Cup.

In Canada, economic data indicates a rebound in the second quarter. Economists from the Royal Bank of Canada expect June and Q2 GDP to confirm a strong recovery following winter stagnation, with monthly GDP tracking above a 3% annualized rate. This growth has been supported by a firmer labour market, improved business and residential investment, and a recovery in the auto sector. Despite this rebound, experts warn that future growth may face headwinds from trade uncertainty, demographic shifts, and declining population trends.