Canada’s retail sales grew 1.0% mom in August to CAD 70.4B, in line with market expectations, driven largely by strength in motor vehicle and parts dealers. Gains were recorded in six of nine subsectors, underscoring still-solid consumer activity despite higher borrowing costs.
Excluding volatile components such as autos and fuel, core retail sales rose an even stronger 1.1% mom, suggesting a firm base of household spending momentum through late summer.
However, the outlook for the following month looks weaker. Statistics Canada’s advance estimate pointed to a -0.7% mom decline in September sales, hinting at some loss of momentum heading into the fourth quarter.
