Canada September retail sales up 0.4% on food; seen up 0.7% in October
© Reuters. FILE PHOTO: A woman carries shopping bags while walking past a window display outside a retail store in Ottawa, Ontario, Canada, July 21, 2017. REUTERS/Chris Wattie/File photo
Canada's retail sales in September grew at a strong pace as consumers spent more at grocery stores and supermarkets, data showed on Friday, the first quarterly increase in sales this year , News.az reports citing Investing.
The solid pace in September which took the overall third quarter growth in retail sales to 0.9%, is likely to be followed by 0.7% in October, a preliminary estimate by Statistics Canada said.
The robust October number suggests that the fourth quarter could start on a strong note and help prop up economic growth, which the Bank of Canada has said is a cause of concern and has hoped to boost through rate cuts.
Currency markets trimmed their bets for a 50 basis point reduction in interest rates next month to 18% from 21% before the retail sales data was released. They see an 82% chance of a 25 basis point rate cut on Dec. 11.
Retail sales, which comprise purchases of motor vehicles, clothing, furniture, food and beverages among others, grew by 0.4% in September on a monthly basis, Statscan said.
This was similar to the rise seen last month and matched estimates by analysts, with the total value of sales at C$66.94 billion ($47.91 billion).
Core retail sales, which exclude sales at gasoline stations and fuel vendors and motor vehicle and parts dealers, were up 1.4% in September, the statistics agency said.
In volume terms sales were up 0.8% in September.
The bulk of the growth came from transactions seen at food and beverage retailers, which contribute around a fifth of the total retail sales. They grew by 3% in September.
The solid pace in September which took the overall third quarter growth in retail sales to 0.9%, is likely to be followed by 0.7% in October, a preliminary estimate by Statistics Canada said.
The robust October number suggests that the fourth quarter could start on a strong note and help prop up economic growth, which the Bank of Canada has said is a cause of concern and has hoped to boost through rate cuts.
Currency markets trimmed their bets for a 50 basis point reduction in interest rates next month to 18% from 21% before the retail sales data was released. They see an 82% chance of a 25 basis point rate cut on Dec. 11.
Retail sales, which comprise purchases of motor vehicles, clothing, furniture, food and beverages among others, grew by 0.4% in September on a monthly basis, Statscan said.
This was similar to the rise seen last month and matched estimates by analysts, with the total value of sales at C$66.94 billion ($47.91 billion).
Core retail sales, which exclude sales at gasoline stations and fuel vendors and motor vehicle and parts dealers, were up 1.4% in September, the statistics agency said.
In volume terms sales were up 0.8% in September.
The bulk of the growth came from transactions seen at food and beverage retailers, which contribute around a fifth of the total retail sales. They grew by 3% in September.
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