- Canada Core Retail Sales MoM: Forecast was 1.0% vs actual 0.3%.
- Higher gasoline prices was offset by a decline in purchases of vehicles and clothing.
- This is bad for the CADUSD.
- CAD Futures declined.
Press Release from Reuters
OTTAWA, Nov 23 (Reuters) – Canadian retail sales rose far less than expected in September as the boost from higher gasoline prices was offset by a decline in purchases of vehicles and clothing, data from Statistics Canada showed on Thursday.
The 0.1 percent increase was short of economists’ forecasts for a gain of 0.9 percent, while volumes fared worse, declining by 0.6 percent. August’s sales were upwardly revised to a decline of 0.1 percent from the initially reported 0.3 percent decrease.
Gasoline sales rose for the second month in a row in September, up 2.6 percent, as supply disruptions caused by Hurricane Harvey in the United States lifted prices at the pump.
But that was tempered by a 0.5 percent decline in sales of motor vehicles as Canadians bought fewer new and used cars. It was the first time vehicle sales declined since June. Excluding vehicles, retail sales were up 0.3 percent.
A 2.8 percent decline in sales of clothing and accessories also weighed on overall retail sales. In all, sales were up in just five out of 11 sectors, accounting for 52 percent of retail trade.
Sales at stores associated with home purchases was one source of strength, with building material and garden equipment sales up 2.6 percent, while furniture purchases increased by 2.3 percent.