Canada’s retail sales rise more than expected in October

Statistics Canada announced on Friday that the Canadian retail sales rose 0.4 percent m-o-m to CAD54.59 billion in October, following an unrevised 1.1 percent m-o-m gain in September.

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

According to the report, sales increased in 6 of 11 subsectors in October, accounting for 50.9 percent of total retail sales. The motor vehicle and parts dealers subsector contributed the most to the sales advance in October, climbing 1.5 percent m-o-m. Excluding motor vehicle and parts dealers, retail sales were flat m-o-m in October compared to an unrevised 1.0 percent m-o-m advance in September 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 0.3 percent m-o-m in October after climbing 2.1 percent m-o-m in September, bolstered by higher sales at sporting goods, hobby, book and music stores (+11.8 percent m-o-m), furniture and home furnishings stores (+6.6 percent m-o-m), as well as building material and garden equipment and supplies dealers (+2.9 percent m-o-m).

In y-o-y terms, Canadian retail sales climbed 7.5 percent in October, following a revised 5.6 percent increase in September (originally a 4.6 percent surge).