Canada September retail sales - A subdued Q3, October seen unchanged
Canadian retail sales with a 0.7% decline were as the preliminary indicator released with August report had suggested, but ex auto sales exceeded expectations with a rise of 0.2%. Still, Q3 is negative in real terms, and October’s preliminary indicator is unchanged, suggesting a continued subdued picture.
September sales rose by 0.2% ex autos, and were unchanged ex autos and gasoline, which may give a guide to the underlying picture. October looks set to give a similar message.
Food saw a strong rise of 0.8% in September but most sectors outside food and gasoline were subdued. Autos more than fully erased an increase in August.
Q3 saw a healthy August but with declines in July and September. Sales increased by 0.2% in Q3 but fell by 0.3% in real terms, which suggests that even with a rise in services Q3 will produce a subdued quarter for consumer spending.
