Welcome back to the Canadian Monthly Market Wrap from YCharts! Here, we break down the most important market trends for Canada-based advisors and their clients every month. As always, feel free to download and share any visuals with clients and colleagues, or on social media.
Inflation fell for the first time in 13 months. After eclipsing 8% for the first time in nearly 30 years, inflation reversed course to settle at 7.59% in July. The Canadian unemployment rate stayed at its all-time low of 4.9% in another win for the economy. However, the Canada Ivey PMI dropped over 12 points in July to log the manufacturing sector’s first contractionary reading since December 2021.
The Canada Ivey PMI plummeted by 12.6 points in July and landed in contraction territory. After falling nearly 10 points in June, the PMI’s July reading of 49.6 marks the manufacturing sector’s first contractionary reading since December of 2021. Despite the poor manufacturing data, Canada Retail Sales rose 1.1% in June, and Canada Real GDP inched 0.2% higher.
Price growth for Canadian homes slowed to just 0.08% in July, marking the 31st consecutive month in which the Canada New Housing Price Index has risen, but at the smallest pace since April 2020.
Consumers and Inflation
After topping 8% for the first time since January 1983, the Canadian Inflation Rate declined by 54 basis points to 7.59%. July’s print is also notable as it snaps a streak of twelve consecutive monthly increases to the inflation rate. Canada’s Consumer Price Index rose in July, but by a relatively lesser 0.26%.
Prices for crude oil slumped in August. The per-barrel spot price for WTI at the end of August was $97.40 USD (-3.9% MoM) and $101.13 USD for Brent (-9.0% MoM). Monthly Retail Sales among Canadian Gasoline Stations reached an all-time high of C$8.12 billion according to the latest data from June, up 53.6% year-over-year.