Canada: Consumer spending on goods was stronger than expected in October

Canada: Consumer spending on goods was stronger than expected in October

Data released Tuesday showed Canadian retail sales rose 1.6% in October, beating expectations. According to analysts at the National Bank of Canada, growth in car dealerships is helping retail sales rise above pre-crisis levels. He believes the October retail sales report marked the end of a strong year in consumer spending.

Important Quote:

“Retail sales grew 1.6% in October, well above forecasts by economists who expect an average of 1.0%. Besides the good news, last month’s result was down by -0.6%. 0.3% corrected upwards.”

“The near-term outlook is also encouraging: the Federal Statistical Office expects retail sales to pick up again in November, allaying fears of a decline due to flooding in British Columbia. has become more precarious as an unprecedented rise in COVID-19 cases in the country has forced many provinces to reimagine social distancing measures.It weighs on consumer spending during the holiday season But we believe that most of the impact of these measures will be seen at the beginning of the first quarter and will be felt in 2022.”

“Services consumption is at greater risk, but a change in the spending structure of goods may also be seen, with households redirecting spending from categories that require close contact to those that do not require interaction. Is.”

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