Last week was eventful in response to inflation announcements from Canada, the US, UK and Europe, along with gross domestic product growth in China. This week will bring fewer announcements, but still some important ones that will impact financial markets. In Canada, all eyes will be on consumer spending when May retail sales are announced. Here’s what to watch for this week.

• The Bank of Canada (BoC) releases its Business Outlook Survey today. The outlook for Canadian businesses has weakened in 2025, with trade tensions expected to slow growth and increase inflationary pressures.
• Canada’s retail sales for May will be released on Thursday. Retail sales have been relatively muted in 2025. Statistics Canada estimated a sharp drop in May, suggesting lower confidence amid trade tensions and economic uncertainty is weighing on Canadian consumers.
• South of the border, the real estate market will gain some of the spotlight. Existing home sales will be announced on Wednesday, and new home sales on Thursday. We will also get an update on mortgage applications.
• Elsewhere around the world, European consumer confidence will be announced on Wednesday, the European Central Bank’s interest rate decision on Thursday and UK retail sales on Friday.
• Notable earnings in Canada include Canadian National Railway, Rogers, Teck Resources and Loblaw. Key earnings in the US include Coca-Cola, General Motors, AT&T, Tesla, Alphabet, American Airlines and Intel.

The Business Outlook Survey and retail sales report will help the BoC make its next interest rate decision, which is scheduled for July 30. Economic uncertainty ratcheted up this month with the US threatening higher tariffs on several countries, including Canada. Canada’s government continues to work with the US to reach a trade agreement. In the meantime, muted consumer and business confidence could impact spending, investment and hiring decisions.

If you would like to discuss this economic and market update or have questions about your finances and investments, please feel free to contact me anytime.