Auto sales get a boost, but other sectors not so lucky
Statistics Canada reported retail sales edged up 0.1% to $39.1 billion in September, the third straight monthly increase, helped by sales of new cars.
The largest increase in dollar terms among all subsectors was a 0.6% rise at motor vehicle and parts dealers, with new car sales up 0.9%.
However, BMO Capital Markets economist Robert Kavcic noted that excluding auto sales, the results were flat and below consensus.
Economists had expected growth of 0.5% for the month.
“Indeed, sales growth has now cooled to a humble 1.8% year over year as Canadian retailers face some stiff challenges,” Kavcic wrote in a note to clients.
“In addition to cooling domestic consumer credit growth, this weekend’s likely stampede of shoppers south of the border will highlight the other challenges – a loonie near parity, more generous duty-free limits and more aggressive U.S. sale prices.”
Sales rose 2.5% at miscellaneous retailers, a category which includes used merchandise stores, office supply and stationery stores, and pet supply stores.
General merchandise store sales decreased 0.7%, with department store sales off 0.9%.
Sales rose in five provinces in September led by Alberta, with sales off 0.7% in Quebec and flat in Ontario.
