Canada: November retail sales are forecasted to rise 0.8% m/m - TDS

Top-tier data returns to Canada with the retail sales release and November retail sales are forecast to rise 0.8% m/m, matching our projection, on a broad advance, according to analysis team at TDS.

Key Quotes

“Auto sales should make a positive contribution along with the surge in gasoline prices. We expect the ex-autos metric to come in at 0.7% m/m (market: +0.9%). We also expect a solid showing in retail volumes, which would be consistent with Q4 consumer spending near a sturdy 3% pace. Alongside the report is November SEPH jobs data, where we expect a strong pickup in employment in line with the ADP report. Wages will be eyed as well.”

“US: Housing data continue with new home sales for December, which are expected by the market to retreat by 7.9%, largely a correction from the 17.5% jump in November. Initial jobless claims are expected to rise to 235k from 220k. The release of advance data on merchandise trade and inventories is delayed until Friday.”