MNI: Canadian Nov Retail Sales Stall After Strong Oct Gain

Canadian retail sales were "relatively unchanged" in November after a 0.7% increase in October, the federal statistics office reported Thursday. 

Statistics Canada's flash estimate for November didn't come with a specific percentage change they've used in the past or with any industry breakdown, in a month where the response rate was below average. 

October's sales increase was in line with the economist consensus for a 0.8% gain, but there was surprising strength with a 1.4% rise in the volume of sales that was the strongest since December 2022. 

The headline sales increase was led by motor vehicle and parts dealers, whose receipts increased by 1.1% primarily from new car dealers. Sales excluding autos and parts increased 0.6%, close to economist predictions sales would rise 0.5%, and after excluding gasoline as well they rose 1.2%. The core increase was led by general merchandise retailers which increased by 2.0%.

The only significant decline in sales by industry was the 3.1% drop at gasoline stations.

The Bank of Canada has raised interest rates 10 times and held them at the last few meetings amid signs that robust consumer demand is being pulled back in line with supply. Other recent reports suggest less spending potential with unemployment rising about a percentage point from a record low and a record jump in mortgage rates pressuring consumer finances.