Canadian Retail Sales Rise 0.6% in October Due to Increased Vehicle Purchases

OTTAWA — Retail sales in Canada saw an increase of 0.6 percent, reaching a total of $67.6 billion in October, according to a report released by Statistics Canada on Friday. This growth was primarily driven by a significant rise in vehicle sales.

When looking at core retail sales, which exclude categories that tend to fluctuate, such as gasoline stations, fuel vendors, and motor vehicle and parts dealers, the increase was more modest, recorded at 0.2 percent. This marks a decrease from a gain of 1.4 percent in September. Additionally, advance estimates suggest that retail sales remained relatively unchanged in November.

CIBC senior economist Andrew Grantham noted that the slower growth outside of automotive sales might indicate a broader slowdown. He explained, “Combined with an advance estimate for no change in November, it appears that growth in retail sales volumes is taking a breather following the surge seen in Q3.” In terms of volume, retail sales also showed no change in October.

The automotive sector stood out, recording the largest sales rise, with both new and used car dealers experiencing a 2.5 percent increase in sales. In contrast, sales at gasoline stations and fuel vendors declined by 0.5 percent in October, marking the sixth consecutive month of decreases.

Among the core retail sales, gains were particularly notable in sectors such as furniture, home furnishings, electronics, and appliances, which saw a notable increase of 2.5 percent. However, food and beverage retailers reported a decline of 0.7 percent in sales during October.

Grantham pointed out that the absence of growth in November could be influenced by the federal government’s announced GST holiday, though the full impact won’t be understood until December's sales figures are available.

Despite the slower gains in October compared to the previous month, the outlook does not appear overly negative. Grantham stated, “Even though the latest release wasn’t as strong as the prior one, consumer spending has still improved relative to the trend seen earlier in the year.”

This report, detailing the retail landscape, provides a snapshot of how various sectors are performing and the implications for consumer spending moving forward.

retail, sales, Canada