Retail sales across Canada were up in both October and November, suggesting that consumers are ready to spend on goods after refraining from major purchases throughout the pandemic.
According to Statistics Canada, retail sales rose 1.6% to $57.6 billion in October, and were up across 7 of the 11 subsectors. Core retail sales, which do not account for sales at gasoline stations and motor vehicle and parts dealers— were up 1.5% from the month prior.
October’s retail trade increase was primarily the result of higher sales at motor vehicle and parts dealers, which rose 2.2%. Sales at new car dealers were up 2.8%, following what were two months of declines. As such, implications stemming from the global semiconductor shortages may not be having such a substantial effect on the economic recovery as previously thought.
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Likewise, the statistics agency’s advance estimate for November shows that retail sales rose another 1.2%, suggesting that Canadians are going out and spending pent-up funds on goods, despite global supply chain disruptions.
Information for this briefing was found via Statistics Canada. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
