23 November 2009

Retail sales top expectations

The following is extracted from the 23 November 2009 edition of “globeandmail.com”.

Retail sales rose a better-than-expected 1 per cent in September as Canadians boosted spending at supermarkets, book stores and car dealers.

Sales rose to $34.9-billion, the seventh gain in nine months, Statistics Canada said Monday, topping forecasts of a 0.6-per-cent increase.

The report comes after jobs and trade data also showed a brightening economic picture in September….

Consumers are pivotal to that recovery. Today's release “suggests that consumer spending will provide some much needed boost to Canadian economic activity in the third quarter,” said Millan Mulraine, economics strategist at TD Securities.

September's gains stemmed from across-the-board increases in the auto sector – used and recreational vehicles, new car dealers and gasoline sales all climbed in the month.

Even without the auto sector, sales were 1.1 per cent higher – the largest gain since January 2009.…

The biggest increase was at general merchandise stores, where sales rose 1.9 per cent. Miscellaneous retailers saw gains as sales at sporting goods, hobby, music and book stores tallied the largest increase in 18 months.

Sales also rose at furniture, home furnishings and electronics stores, while they were flat or slightly down at building and outdoor home supplies stores along with clothing stores.

Among provinces, Quebec registered the biggest increase, with its fourth gain in the past five months. Sales rose in all of the Atlantic provinces, led by Prince Edward Island. In Saskatchewan, however, they fell and Alberta sales were flat.

Retail sales have been climbing in recent months, but they remain 3.3 per cent below last year's levels.