Skip to main content

File photo of a car dealership in Toronto.

SARAH DEA/The Globe and Mail

Statistics Canada reported retail sales edged up 0.1 per cent to $39.1-billion in September, the third straight monthly increase, helped by sales of new cars.

The largest increase in dollar terms among all subsectors was a 0.6 per cent rise at motor vehicle and parts dealers, with new car sales up 0.9 per cent.

However, BMO Capital Markets economist Robert Kavcic noted that excluding auto sales, the results were flat and below consensus.

Story continues below advertisement

Economists had expected growth of 0.5 per cent for the month.

"Indeed, sales growth has now cooled to a humble 1.8 per cent year over year as Canadian retailers face some stiff challenges," Mr. Kavcic wrote in a note to clients.

"In addition to cooling domestic consumer credit growth, this weekend's likely stampede of shoppers south of the border will highlight the other challenges — a loonie near parity, more generous duty-free limits and more aggressive U.S. sale prices."

Sales rose 2.5 per cent at miscellaneous retailers, a category which includes used merchandise stores, office supply and stationery stores, and pet supply stores

General merchandise store sales decreased 0.7 per cent, with department store sales off 0.9 per cent.

Sales rose in five provinces in September led by Alberta, with sales off 0.7 per cent in Quebec and flat in Ontario.

Report an error
Comments

The Globe invites you to share your views. Please stay on topic and be respectful to everyone. For more information on our commenting policies and how our community-based moderation works, please read our Community Guidelines and our Terms and Conditions.

Please note that our commenting partner Civil Comments is closing down. As such we will be implementing a new commenting partner in the coming weeks. As of December 20th, 2017 we will be shutting down commenting on all article pages across our site while we do the maintenance and updates. We understand that commenting is important to our audience and hope to have a technical solution in place January 2018.

Discussion loading… ✨