In his latest note to clients, economist David Rosenberg writes about how the “Canadian economy is sputtering.”
“For Q2 as a whole, retail sales decreased a 2% annual rate, slowing from +1% SAAR in Q1 and +8% in Q4 – the weakest performance since Q2 2010,” he wrote.
However, just because Canadian retail sales is down doesn’t mean the Canadian consumer is dead.
From David Rosenberg’s note this morning:
Perhaps Canadians are cutting back on spending here at home but they are providing support for the cash registers south of the border. Indeed, Canadians made a record 1.9 million overnight trips to the U.S. in June, with the stronger Canadian dollar and increased duty free exemptions for cross border shopping both at play (daily exemptions rose to $200 from $50). Such short-term shopping oriented trips soared 7.5% from May to the highest level since the records began in 1972.
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