Canada: Core retail sales expected to bounce back in October - TDS

Canada’s core retail sales are forecast to bounce back in October after a prolonged period of disappointment expects analysts at TDS.

Key Quotes

“Gasoline station sales will play a large part in retail sales growth following a sharp increase in the price at the pump. Retail activity may also benefit from a regulated increase in minimum wages across four provinces, which make up 54% of the working-age population, as well as the Child Benefit checks paid out to families starting in late July. Providing a partial offset will be an expected pullback in auto sales following an outsized gain in September while building materials and home furnishings should be weaker after a deceleration in residential construction. A 0.2% increase in seasonally adjusted consumer prices should leave retail volumes weaker than the nominal print.”