MNI Data Analysis:Weak Headline But Cdn Core Ret Sls Hold Up>

--Updating Story Sent at 8:38 ET 

By Yali N'Diaye

     OTTAWA (MNI) - Canadian retail trade growth slowed more than 

expected in November, when sales edged up 0.2% on the month after an 

upwardly revised 1.6% increase in October, data from Statistics Canada 

showed Thursday. 

     While sales reached a record C$50.1 billion in November, their 

12-month growth pace also slowed, to 6.5% from 6.7% in October. 

     Sales volumes, more relevant to real GDP, were up 0.3% in November 

after rising 1.5% in October, bringing down the 12-month gain to 4.5% in 

November from 5.0% the previous month. 

     --CORE HOLDS UP 

     Despite the disappointing headline figure, core sales excluding 

autos and parts and gas stations held up well, with a 0.9% gain 

supported by a 0.8% increase in volumes. 

     Sales of motor vehicles and parts contracted 3.6% over the month, 

erasing the 3.6% gain recorded in October. Real sales were down 1.0%, 

indicating that lower prices played a key role in the weak November 

performance. 

     Conversely, higher prices played a positive role in the 5.9% gain 

in gasoline station receipts, as volumes were up 1.3%. 

     --OVERALL MIXED 

     Overall, however, the picture was mixed, with six of 11 subsectors 

recording gains, representing just 37% of retail trade. 

     Excluding autos and parts, sales rose 1.6%, the largest gain since 

January 2017. 

     Excluding gasoline stations, however, sales contacted 0.5% after 

rising 1.8% in October. 

     Among noticeable gains were a 12.9% increase in electronics and 

appliances, with the agency citing promotional events such as Black 

Friday "coinciding with the timing of new product releases in November." 

     General merchandise store sales were also a positive contributor 

(+1.8%). 

     On the other hand, food and beverages (-1.0%), building material 

and garden equipment and supplies (-0.9%), and health and personal care 

(-0.7%), had a negative contribution. 

     Regionally, the picture was also mixed, with sales up in half of 

the provinces, led by Quebec.   

     Going forward, "consumption is expected to contribute meaningfully 

to growth in the near term, supported by ongoing strong job creation and 

elevated consumer confidence," the Bank of Canada said in its January 17 

economic projections update. 

     On the employment front, Statistics Canada reported Thursday that 

payrolls increased by 16,100 in November, with average weekly earnings 

up 2.8% year-over-year. 

     In December, according to the Labor Force Survey, the economy added 

78,600 jobs, bringing the total gain for 2017 to 422,500, the largest 

expansion since 2002. 

     The unemployment rate fell to a record low 5.7%. 

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

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