Canada: Downside surprise in Retail Sales – TDS

Analysts at TD Securities note that Canada’s retail sales surprised sharply to the downside, falling by 1.2% MoM in October against expectations (TD & market) for a 0.5% increase.

Key Quotes

“Details were broadly downbeat, with sales down in 8 of 11 product groups led by a 3.2% decline in motor vehicles. Meanwhile, the largest positive contribution came from a 1.5% increase in gasoline station sales which was entirely driven by higher prices at the pump. Accordingly, real retail sales fell by 1.4% for their largest one-month drop since 2017.”