MNI DATA IMPACT: Canada Retail Sales -0.1% Vs. Forecast -0.3%>

By Greg Quinn and Anahita Alinejad

     OTTAWA (MNI) - Canadian retail sales were little changed for a 

second month in September as new car purchases fell while spending rose 

at home improvement stores. 

     Sales declined 0.1% on the month, less than the MNI economist 

median for a fall of 0.3%. Statistics Canada's report Friday also 

revised August sales to a 0.1% increase from an initial estimate they 

fell by the same magnitude. 

     The report wraps up the third quarter with an increase of 0.5%, 

less than half the pace recorded in the second quarter. That's in line 

with market forecasts for next Friday's GDP report to show the 

annualized pace of growth to be cut by about half from the second 

quarter's 3.7%. The Bank of Canada has held borrowing costs steady this 

year as other central banks cut saying domestic spending has been 

resilient amid a global trade war. 

     Retail sales have been little changed now since March, and after 

adjusting for short-term price swings they have been flat for more than 

a year. 

     September's report showed a 1% decline in auto and parts sales, 

led by new vehicles. That decline was curbed by a 3.3% rise at building 

material and garden stores, along with a 1.2% gain in food. 

     Excluding automobiles, sales rose 0.2%, ahead of the MNI median for 

a decrease of 0.2% in September. Taking out the 2.3% decline in gasoline 

sales as well as autos, sales climbed 0.7% in September.

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

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