MNI DATA IMPACT: Canada Nov. Retail +0.9% Vs. Forecast +0.5%>

By Greg Quinn and Anahita Alinejad

     OTTAWA (MNI) - Canadian retail sales rose the fastest in eight 

months in November on a rebound in food and new cars, easing concern 

that consumer confidence was being curbed by a weaker global economy.

     Sales grew 0.9% on the month, beating the 0.5% MNI economist median 

and making up most of October's 1.1% decline, Statistics Canada reported 

Friday from Ottawa. 

     Automobile and parts sales 3%, the fastest since May 2018, led by 

new vehicles. Food sales rebounded in November with a 0.9% increase. 

     The report is the first big indicator of consumer demand since BOC 

Governor Stephen Poloz opened the door to an interest rate cut on 

Wednesday, citing evidence global trade tensions are causing consumers 

to hold back spending. Poloz said growth slowed to a 0.3% pace in the 

fourth quarter and he would assess the need to cut against evidence  

weakness would persist and threaten his 2% inflation target. 

     Sales rose in 6 of 11 subsectors representing 70% of retail trade. 

Building material and garden equipment sales rose for the first time in 

five months, and electronics sales were up 1%.

     Even with the retail sales gain, the economy shrank in October and 

other reports have suggested November will be a weak month as well. 

Canada has been running trade deficits for most of the past several 

years and business investment has been slow. 

     Retail sales climbed 1.9% in November from a year ago, Statistics 

Canada said, but after adjusting for short-run price changes the volume 

of sales has been little changed. 

     Retail sales excluding autos and parts also lagged the MNI median 

of a 0.5% increase, coming in at 0.2% in November. 

--MNI Ottawa Bureau +1-613-314-9647; greg.quinn@marketnews.com

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