08:51 AM EDT, 10/23/2025 (MT Newswires) -- Canadian retail sales continued their 2025 rollercoaster ride, with a rise in August likely followed by another dip in September, said CIBC after Thursday's release of the data.

The 1.0% month-over-month increase in headline sales during August was in line with consensus expectations and the advance estimate, although largely just made up for a 0.7% month-over-month decline in the prior month.

Auto sales contributed to the August advance, although that was offset by a decline in the other often-volatile segment of gasoline stations, noted the bank.

Core sales excluding autos/gasoline, sales were up by 1.1% month over month, led by clothing stores.

In volume terms, total sales rose 1.0% month over month.

However, the August rebound appears to have been followed by another retreat in September, with advance data pointing to a 0.7% month-over-month decline despite some indications of higher prices during that month.

Through the monthly volatility, retail sales volumes have been broadly flat since December, pointing to generally soft consumer sentiment amid United States tariff uncertainty and a weaker labor market, stated CIBC.