Canada’s retail sales rise more than forecast in November

Statistics Canada reported on Friday that the Canadian retail sales surged 0.9 percent m-o-m to CAD51.48 billion in November, following a revised 1.1 percent m-o-m decline in October (originally a 1.2 percent m-o-m drop). That represented the largest advance in retail activity since March.

Economists had forecast a 0.4 percent m-o-m increase for November.

According to the report, the November increase was primarily attributable to higher sales at motor vehicle and parts dealers (+3.0 percent m-o-m) and at food and beverage stores (+0.9 percent m-o-m), both of which were down in October. In addition, sales at building material and garden equipment and supplies dealers (+2.1 percent m-o-m) recorded their first gain in the last five months, and sales at gasoline stations (0.2 percent m-o-m) edged up, reflecting in part higher prices at the pump.

Excluding motor vehicle and parts dealers, retail sales rose 0.2 percent m-o-m in November compared to a revised 0.4 percent m-o-m fall in October (originally a 0.5 percent m-o-m drop) and economists' forecast for a 0.4 percent m-o-m advance. Excluding motor vehicle and parts dealers and gasoline stations, retail sales also went up 0.2 percent m-o-m in November.

In y-o-y terms, Canadian retail sales climbed 1.9 percent in November, following a 0.6 percent decrease in October.