Canada’s retail sales unexpectedly decline in October

Statistics Canada reported on Friday that the Canadian retail sales fell 1.2 percent m-o-m to CAD50.92 billion in October, following a revised flat m-o-m performance in September (originally a 0.1 percent m-o-m drop). That represented the sharpest decline in retail sales since November 2018.

Economists had forecast a 0.5 percent m-o-m increase for October.

According to the report, the October decrease was primarily attributable to lower sales at motor vehicle and parts dealers (-3.2 percent m-o-m) and at building material and garden equipment and supplies dealers (-3.1 percent m-o-m). At the same time, sales at gasoline stations rose 1.5 percent m-o-m in October, primarily reflecting higher prices at the pump.

Excluding motor vehicle and parts dealers, retail sales dropped 0.5 percent m-o-m in October compared to a revised 0.1 percent m-o-m fall in September (originally a 0.2 percent m-o-m gain) and economists' forecast for a 0.3 percent m-o-m advance. Excluding motor vehicle and parts dealers and gasoline stations, retail sales reduced by 0.8 percent m-o-m in October.

In y-o-y terms, Canadian retail sales decreased 0.6 percent in October, following a 1.0 percent jump in September.