An appetite for new vehicles powered Canadian retail sales higher in September, the third consecutive monthly increase, but the excitement didn’t extend to the mall.
New figures from Statistics Canada show overall retail sales were up 1% for the month, well ahead of the 0.3% that had been expected by economists. However, sales would have been relatively flat without motor vehicles and parts.
The September results came as sales at new car dealers climbed 5%, the largest monthly gain since January 2009, and sales at parts dealers rose 4.1%.
“Strong employment gains, rising consumer confidence and a bustling housing resale activity have stoked the appetite for big-ticket purchases, giving a boost to retail sales in recent months,” CIBC economist Emanuella Enenajor said.
“But with many of those factors set to downshift, retail sales could slow, with consumers making a less meaningful contribution to GDP in the quarters ahead.”
Gains were reported in six of the 11 reporting subsectors, accounting for 55% of retail trade.
Sales at building materials and garden equipment and supplies dealers were up 0.8%, while health and personal care stores were up 0.2%. Gasoline station sales rose 0.8%.
Meanwhile, sales at food and beverage stores fell 0.3% on lower grocery and supermarket sales.
Clothing and clothing accessories sales were down 0.6% and electronics and appliance stores saw sales fall 1.1%.
Retail sales rose in nine provinces in September, with Ontario up 1%, Alberta up 2% and Quebec up 0.7%.
Prince Edward Island, which saw sales fall 0.3%, was the only province to post a drop.
