MNI 5 THINGS:Cdn GDP Tops Expectatns; Retail Sales Didsappoint>

--5 Things We Learned From Canadian GDP and Retail Sales Data

By Yali N'Diaye

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

data on Canadian retail sales and GDP by industry released Friday by 

Statistics Canada: 

     - Canada GDP rose 0.3% in October, topping analysts' expectations 

in a MNI survey, which had centered on a 0.1% increase. October's gain 

more than offset the 0.1% contraction recorded in September, with both 

goods-producing and services output expanding by 0.3%. 

     - GDP gains were widespread across 15 of 20 industries. Within the 

goods sector, manufacturing rose 0.7%, partly reflected in increased 

inventories. Durable manufacturing was up 0.9% and non-durable 0.4%. Oil 

and gas extraction rose 3.6% and overall energy output increased 1.3%. 

In fact, GDP excluding energy was flat, a slowdown from September, when 

it edged up 0.2%. Within services, finance benefitted from stock and 

bond market volatility as activity increased in both markets. Among the 

five industries posting declines in October was transportation and 

warehousing (-0.3%), as Canada Post strikes continued and pipeline 

transportation declined.  

     - Retail sales rose 0.3% in October, while analysts in a MNI survey 

had expected a 0.4% gain. On a 12-month basis, retail sales rose just 

0.6%, which was last matched in January 2015. GDP data showed overall 

retail trade edged up 0.1% on the month. 

     - Overall details of the retail sales report were weak, showing 

little momentum in core sales. Gains were concentrated in 5 of 11 

subsectors, representing 69% of retail trade. Autos and parts rose 1.3% 

and gasoline station receipts were up 1.9%, all due to higher volumes. 

Total sales excluding autos and parts were flat. Sales excluding autos 

and parts, and gasoline, contracted 0.4%, the largest decrease since 

December 2017. Total sales volumes were flat on the month. 

     - Cannabis was legalized on Oct. 17 this year, and was included in 

miscellaneous store retailers, which recorded an overall 4.5% gain in 

sales. Sales at cannabis stores totaled 43 million over the two-week 

period. Excluding cannabis, miscellaneous sales were up 1.1%. 

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

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