CAD: Projecting a 0.8% m/m gain for nominal retail sales in September – RBC CM

Research Team at RBC Capital Markets, is projecting a 0.8% m/m gain for Canada’s nominal retail sales in September, following a 0.1% m/m decline in August.

Key Quotes

“This should be mainly from higher motor vehicles prices (expected ~1.6%) and gasoline prices (~2%) in the month, while we see core sales (excluding those two items) up a more modest 0.3% m/m. In volumes terms, we are looking for a 0.5% m/m increase after a 0.3% m/m decline in August. Such an outcome would be consistent with our 1.7% q/q annualized growth in household consumption in Q3, as well as our 3.5% q/q annualized call for growth in the economy overall in the quarter (Q3 GDP report released on November 30).”