Sales by Canadian retailers rose 1.6% to $ 57.6 billion in October, Statistics Canada reported on Tuesday. Retail sales increased in all provinces except Quebec, where they fell 0.2%. The largest increases were observed in Ontario and Alberta.
New motor vehicle sales rebounded after two consecutive months of decline in the country. According to Statistics Canada, the effect of the shortage of semiconductor chips on the supply of motor vehicles was less pronounced in October than in previous months.
Sales at motor vehicle and parts dealers rose 2.2%, driven by a 2.8% jump in new vehicle sales, Statistics Canada said.
The agency added that its preliminary estimate for November pointed to an increase in retail sales of 1.2% for that month, but warned that the figure would be revised.
Omicron
“Canadian commerce was ramping up in October and November, before Omicron likely applied the brakes in December,” CIBC Capital Markets economist Andrew Grantham said in a note to clients.
The 1.6% increase in retail sales in October was higher than the 1.0% expected by economists, he noted, adding that early Statistics Canada estimates for November indicated that sales in the retail and wholesale had another impressive gain over the past month.
“If it weren’t for the rise of Omicron and the tightening of some restrictions across the country, we would likely be forced to further improve our forecast for fourth quarter gross domestic product (GDP),” he said. Mr. Grantham said. As it stands, something around 4.5% may still be appropriate taking into account a modest pullback in December. “
Meanwhile, core retail sales, which exclude sales at gasoline stations and auto and parts dealers, rose 1.5%, the federal agency said.
Sales increased in seven of eleven subsectors in October, accounting for almost 60% of retail trade.
One of the largest increases was in hobby, music and book stores, which saw sales jump 17.5%.
Statistics Canada noted that the increase coincided with the continued resumption of many recreational and school sports leagues in the fall.
General merchandise store sales increased 2.8%, their fifth consecutive monthly gain.
Building material and garden equipment and supplies dealers posted a 3.2% increase in sales.
Meanwhile, sales at food stores edged down 0.6%, mainly due to weaker sales at supermarkets and other grocery stores. Expressed in volume, retail sales rose 0.9% in October.