Canada retail sales dropped -0.6% mom to CAD 56.6B in September, better than expectation of -1.6% mom decline. The contraction was led by sales at motor vehicle and parts dealers (-1.6%) as new car dealer sales (-2.8%) continued to struggle amid global supply shortages for semiconductor chips. Sales dropped in 7 of 11 subsectors, representing 63.5% of retail trade. Excluding gasoline stations and motor vehicle and parts, sales dropped -0.3% mom. In October, advance estimate shows a 1.0% mom rebound in sales.
