MNI 5 THINGS: Canada Nov Retail Sales -0.9%,But Core Sales Up>

By Yali N'Diaye

     OTTAWA (MNI) - The following are the key points from the November 

data on Canadian retail sales released Wednesday by Statistics Canada: 

     - Retail sales fell 0.9% in November, more than erasing the 0.2% 

advance in October, and a larger drop than the 0.6% decline expected by 

analysts in a MNI survey. The performance was especially disappointing 

given the downward revision to October's estimate from the 0.3% gain 

initially reported. 

     - Excluding a 1.8% decline in autos and parts sales, retail sales 

still contracted 0.6% on the month, the largest decrease since December 

2017, while analysts had expected a 0.4% drop. On a 12-month basis, 

sales excluding autos and parts edged down 0.1%, falling into negative 

territory for the first time since January 2015. 

     - However, falling gasoline prices had a significant impact on 

November's headline figures, explaining more than half of the overall 

0.9% monthly decrease. Sales excluding gasoline stations were indeed 

down 0.4%. Sales at gasoline stations fell 5.0% on the month, with 

volumes down 1.5%. 

     - Overall, sales were down in 6 of 11 sectors, representing 75% of 

retail trade, with autos and parts accounting for more than a quarter of 

retail trade in value. Housing-related spending decreased on the month, 

with furniture and home furnishings down 0.4%, although this was price 

related, as volumes edged up 0.1%. Building material and garden 

equipment fell 0.3%. Regionally, sales decreased in eight provinces. 

     - Still, despite the disappointing headline figures, data showed 

core activity was resilient. Sales excluding autos and part and gasoline 

stations were up 0.2%. They even rose 0.5% when removing the price 

effect. That being said, it would take a particularly strong month of 

December to see stronger quarterly sales from the third quarter. 

--MNI Ottawa Bureau; email: yali.ndiaye@marketnews.com 

[TOPICS: M$C$$$,MACDS$]