GM, Buick and Chevrolet vehicles at a dealership in Toronto on Oct. 1, 2014.Fred Lum/The Globe and Mail
Canadian retail sales were little changed in October as gains in appliances and building materials made up for a drop at automobile dealerships.
Sales were little changed at $42.8-billion, Statistics Canada said today in Ottawa. Economists surveyed by Bloomberg News forecast a 0.3-per-cent decrease, based on the median of 18 projections.
Consumer spending has been bolstered this year by a stronger job market and low borrowing costs, which have fueled spending on big-ticket items such as houses and appliances. The Bank of Canada has warned strained consumer finances and the chance of a drop in housing prices are a key risk to the financial system.
Building material and garden supply sales rose 2 per cent to $2.43-billion. Electronics and appliance store receipts rose for a fifth month, by 3.2 per cent to $1.32-billion.
Motor vehicle and parts sales fell 0.6 per cent to $10.5-billion, leaving them 9.8 per cent higher than they were 12 months earlier. Gasoline station sales fell 1.1 per cent to $5.30-billion.
Purchases excluding the motor vehicle and parts category rose 0.2 per cent, matching the median economist forecast in a Bloomberg survey.
The volume of retail sales was also little changed in October. That measure excludes the effects of price changes and more closely reflects the industry's contribution to economic growth.