Canada's retail sales rose 1.2% month on month in August, with gains in all nine subsectors. Inflation-adjusted volumes rose by the same amount, and a preliminary estimate points to another 0.7% increase in September.
Canada's retail sales increased 1.2% month on month to CAD 74.6 billion in August, with gains recorded across all nine retail subsectors. Motor vehicle and parts dealers made the largest contribution, but the recovery extended beyond automobiles. Core retail sales, which exclude motor vehicles and gasoline, rebounded from -0.7% to +1.1%.
Volumes confirm the gain
Inflation-adjusted retail volumes also rose 1.2%, which indicates the improvement reflected higher quantities purchased rather than simply rising prices. Real core retail sales gained 1.3%.
Several consumer categories advanced. New car dealers recorded a 1.5% increase, food and beverage retailers rose 1.1%, and general merchandise sales gained 1.0%. Health and personal care sales increased 1.6%, extending their growth streak to ten consecutive months.
Fuel and regional gaps
Gasoline station sales, however, rose 1.7% in value terms while volumes declined 0.5%. That points to higher fuel spending driven by prices rather than stronger consumption.
Regional results were less uniform. Ontario gained 2.2% and British Columbia 2.1%, while Alberta recorded a marginal 0.1% decline.
September estimate points higher
Statistics Canada's preliminary estimate shows another 0.7% increase in retail sales in September. The advance reading rests on responses from 58.5% of surveyed businesses and remains subject to revision.
Confirmation of the preliminary figures will be needed to judge whether the stronger momentum is being sustained.
Source: ActionForex
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