06:57 AM EDT, 09/24/2024 (MT Newswires) -- Canadian retail sales came in better than expected for July, with a 0.9% month-over-month headline gain or a solid 1.0% increase in volume terms, noted Bank of Montreal (BMO).

The latter is the strongest pace since early 2023, said the bank.

Despite the better-than-expected report released Friday, it's clear that Canadian consumers are still struggling, stated BMO. Smoothing out the monthly volatility, sales volumes have remained subdued after the pandemic swings.

They lag far behind population growth. In other words, according to the bank: more people are in the country, but each person is buying less stuff.

Q3 population estimates, out on Wednesday, are expected to reflect another yearly growth print of around 3% year over year, pointed out BMO. The weak per capita spending trend is expected to continue until rate cuts start to make their way into household budgets and as population growth slows to a more manageable pace.