Canada August retail sales rise 1.2%
SPY•Canadian retail sales rose 1.2% in August from July to C$74.57 billion, slightly less than expected. Statistics Canada’s flash estimate indicated sales likely increased 0.7% in September.
1. August sales rebound
Retail sales rose 1.2% in August, reversing July’s 0.7% decline. Sales increased in all nine subsectors, and sales in volume terms also rose 1.2%.
2. Broad-based gains
Core retail sales, excluding gasoline stations and motor vehicle and parts dealers, increased 1.1%. Sales at motor vehicle and parts dealers rose 1.2%, contributing the most to the overall gain, while food and beverage retailers’ sales increased 1.1% after declining in July.
3. September and rate decision
Statistics Canada’s flash estimate indicated retail sales likely increased 0.7% in September. The report came before the Bank of Canada’s monetary policy decision the following week; money markets were pricing in a 25-basis-point rate hike, while economists were divided on whether the central bank would hike or hold.
