MNI 5 THINGS: Canada Sept Retail Sales Pick Up But 3Q Slows>

By Yali N'Diaye

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

data on Canadian retail sales released Friday by Statistics Canada: 

     - Retail sales rose 0.2% in September, while analysts in a MNI 

survey had expected flat sales. The September positive reading was 

reinforced by an upward revision to August estimate, now seen flat after 

being initially reported down 0.1%. 

     - Also reinforcing the overall tone of the report was the fact that 

volumes were actually up 0.5% on the month, more than offsetting the 

0.2% decrease recorded in August. Despite the rebound in September, real 

sales growth slowed to 0.4% in the third quarter, less than half the 

pace recorded the previous quarter (+0.9%), suggesting a weaker 

contribution from consumer spending to GDP. The Bank of Canada has 

already factored in such slowdown as part of its growth rotation 

scenario. 

     - On a sector basis, core sales showed a mixed picture in 

September. Overall, sales increased in six of 11 subsectors, 

representing 75% of retail trade, led by food and beverages (+0.9%). 

Auto sales were up 0.5%, with volumes up 1.0%. Excluding autos, sales 

increased 0.1%. 

     - On the downside, lower prices weighed on gasoline stations 

receipts, which fell 1.1%, with volumes down 0.3%. Sales excluding 

gasoline stations rose 0.4%. Excluding autos and gas, sales also rose 

0.4%. Spending related to housing purchases and home renovation 

decreased in September. 

     - Regionally, sales increased in seven provinces. Statistics Canada 

said British Columbia wildfires and Ottawa-Gatineau tornadoes likely had 

a "small" impact on sales. Sales in B.C. were flat. The edged up 0.1% in 

both Ontario and Quebec. 

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

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