2024-01-19 14:00:59
(Ottawa) Retail sales fell 0.2% in Canada in November, the moment which marks the start of the holiday promotions period.
Statistics Canada indicated Friday that retail sales stood at $66.6 billion, less than the consensus forecast of economists.
It is in Quebec that the drop is most pronounced at 1.4%. Overall, retail sales declined in five provinces in November.
Shelly Kaushik, economist at BMO Capital Markets, calls it a “botched” Black Friday. “The decline in retail sales has been disappointing,” she wrote in a note.
“Low sales volumes point to a stagnant economy in November as consumers continue to adjust to higher interest rates. »
By sector, food retailers posted the largest decline, of 1.4%. “The decline in grocery store sales is not explained by lower prices, but might perhaps reflect consumers switching to less expensive brands in stores as prices at grocery stores generally continue to decline. “rising at an uncomfortable speed,” said Katherine Judge of CIBC Capital Markets in a note.
Statistics Canada reports that the largest increase in core retail sales in November in Canada, of 1.5%, was seen among retailers of clothing, clothing accessories, footwear, jewelry, luggage and leather goods .
Sales at motor vehicle and parts dealers rose 0.5%.
Furthermore, Statistics Canada reports that on a seasonally adjusted basis, electronic retail sales fell 1.5% to $3.9 billion in November, which represented 5.8% of total retail trade. , compared to 5.9% in October.
Rates remained high throughout 2023 as the Bank of Canada made hikes to try to bring inflation back to its 2% target, but high rates weighed on some purchasing decisions.
Statistics Canada’s advance estimate suggests that retail sales increased by 0.8% in December in the country, but this figure will be subject to revision.
Even if the preliminary estimate points to an increase in sales, Mme Judge expects this strength to be temporary “given the weakening job market and the impact of rising interest rates on spending.”
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