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

Statistics Canada announced on Friday that the Canadian retail sales rose 1.3 percent m-o-m to CAD55.19 billion in November, following an unrevised 0.4 percent m-o-m advance in October.

Economists had forecast a 0.1 percent m-o-m uptick for November.

According to the report, sales increased in 7 of 11 subsectors in November, accounting for 53.4 percent of total retail sales. Sales at food and beverage stores and e-commerce sales contributed the most to the growth, surging 5.9 percent m-o-m and 2.7 percent m-o-m respectively. Meanwhile, sales at motor vehicle and parts dealers declined 0.9 percent m-o-m, recording their first monthly drop since April. Excluding motor vehicle and parts dealers, retail sales jumped 2.1 percent m-o-m in November compared to a flat m-o-m performance in October and economists’ forecast for a 0.3 percent m-o-m increase. Core retail sales, which excludes gasoline stations and motor vehicle and parts dealers, increased 2.6 percent m-o-m in November after advancing 0.3 percent m-o-m in October.

In y-o-y terms, Canadian retail sales climbed 7.5 percent in November, following a revised 7.3 percent increase in October (originally a 7.5 percent surge).