Skype: Signal2forex / Whatsapp: +79065178835

No products in the cart.

Canadian Retail Sales Down in December, But Volumes Edge Up

Canadian retail sales dropped 0.1% (m/m) in December, following the prior month’s 0.9% drop. This was slightly better than consensus expectations for a 0.3% decline. The picture was somewhat better after accounting for price changes, with volumes up a modest 0.2%.

The headline decline was mostly a gasoline price story, with sales at gasoline stations falling 3.6% (0.3% in real terms). Excluding this category, retail sales were up 0.4%. Electronics and appliances stores also had a notably weak showing, down 4% on the month.

Providing some offset were sales at motor vehicles and parts dealers and food and beverage stores, which moved up 1% and 0.9% on the month, respectively. Building material and garden equipment stores provided a decent surprise, up 3.1%, the first increase in this housing-market-sensitive category since mid-year.

– advertisement –

Regionally, retail sales were up in six provinces, leaving the decline concentrated in Ontario and Quebec. Retail sales activity fell 0.5% and 0.2% in those provinces, respectively, with B.C. sales also down -0.2% m/m and Albertan sales effectively unchanged.

Key Implications

The retail activity picture in Canada remains that of a slowdown consumer spending. For the year as a whole, retail sales increased 2.7%, with a modest 0.7% increase in volumes – a notable moderation relative to last year, and the slowest pace of volumes growth since 2009. Worse, much of the disappointment was in the fourth quarter, with a 0.5% nominal drop and an almost flat volumes print. Still, the December release came in slightly better than expected and with a modest increase in volumes.

Looking ahead, the impacts of a healthy, albeit moderating labour market will continue to be countered by elevated borrowing and debt service costs, leaving us looking for only a modest pace of consumer spending growth. We expect the Bank of Canada to remain on the sidelines in the near-term, consistent with its data-driven approach and the range of moderating economic activity indicators.

Today’s print leaves our Q4 GDP tracking unchanged a 0.9%, slightly below the Bank of Canada’s January MPR expectations (1.3%).

For traders: our Portfolio of forex robots for automated trading has low risk and stable profit. You can try to test results of our download forex ea
Signal2forex review

Share this product!

Do you want to start trade profitably?
Earn 50-300% monthly!