Canadian retail sales increased by 0.4% to C$66.6 billion in August 2023, largely driven by a 3.5% rise in motor vehicle and parts sales, though core retail sales excluding autos fell by 0.4%. Despite the growth in car sales, consumer spending remains weak across other sectors, with notable declines in food and beverage sales by 1.5%. The Bank of Canada's interest rate cuts since June have contributed to a slight uptick in consumer spending, with September's preliminary data also indicating a 0.4% increase. Economists had anticipated broader retail growth, but the actual figures fell short of expectations, reflecting cautious consumer behavior. The mixed retail performance suggests potential for further interest rate reductions to stimulate spending.