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Economic news
19.01.2024

Canada’s retail sales unexpectedly fall in November

The data, issued by Statistics Canada on Friday, revealed that Canadian retail sales fell 0.2 per cent m-o-m to CAD66.61 billion in November 2023, following a downwardly revised 0.5 per cent m-o-m climb (from +0.7 per cent m-o-m) in October. This marked the first drop in retail sales in three months. 

Economists had expected a flat m-o-m performance in November.

According to the report, 4 of 9 subsectors witnessed decreases in retail sales in November. Sales at general merchandise retailers (-1.8 per cent m-o-m) recorded the largest drop, followed by food and beverage retailers (-1.4 per cent m-o-m), sporting goods, hobby, musical instrument, book, and miscellaneous retailers (-0.3 per cent m-o-m), and building material and garden equipment and supplies dealers (-0.1 per cent m-o-m). Meanwhile, clothing, clothing accessories, shoes, jewellery, luggage and leather goods retailers (+1.5 per cent m-o-m), furniture, home furnishings, electronics, appliances retailers (+1.0 per cent m-o-m), and motor vehicle and parts dealers (+0.5 per cent m-o-m) logged in the biggest gains in retail sales in November. 

Excluding auto, retail sales declined 0.5 per cent m-o-m in November after a downwardly revised 0.4 per cent m-o-m advance (from +0.6 per cent m-o-m) in the previous month, being worse than economists’ forecast of a 0.1 per cent m-o-m slip. 

In y-o-y terms, Canadian retail sales increased 1.8 per cent in November, following a downwardly revised 1.9 per cent rise (from +2.2 per cent) in the previous month.

Statistics Canada also reported its preliminary estimates suggest that Canada’s retail sales jumped 0.8 per cent m-o-m in December 2023.

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