Canada’s retail sales rise much more than forecast in September

Statistics Canada announced on Friday that the Canadian retail sales surged 1.1 percent m-o-m to CAD53.87 billion in September, following an upwardly revised 0.5 percent m-o-m gain in August (originally a 0.4 percent m-o-m advance).

Economists had forecast a 0.2 percent m-o-m increase for September.

According to the report, sales increased in 9 of 11 subsectors in September, accounting for 93.2 percent of total retail sales. The motor vehicle and parts dealers subsector contributed the most to the sales advance in September, climbing 1.5 percent m-o-m. Excluding motor vehicle and parts dealers, retail sales grew 1.0 percent m-o-m in September compared to an unrevised 0.5 percent m-o-m gain in August and economists’ forecast for a 0.2 percent m-o-m rise.

Meanwhile, core retail sales, which excludes gasoline stations and motor vehicle and parts dealers, rose 1.1 percent m-o-m in September after advancing 0.4 percent m-o-m in August, bolstered by higher sales at general merchandise stores (+1.8 percent m-o-m) and food and beverage stores (+0.9 percent m-o-m).

In y-o-y terms, Canadian retail sales climbed 4.6 percent in September, following a revised 3.7 percent increase in August (originally a 3.5 percent surge).