Retail sales in Canada decreased 1.2 percent from a month earlier in October 2019, following a revised flat reading in the previous month and against market expectations of a 0.5 percent gain. It was the sharpest decline in retail activity since November last year, mainly due to lower sales at motor vehicle and parts dealers (-3.2 percent), in particular new car dealers (-3 percent) and used car dealers (-5.2 percent); and at building material and garden equipment and supplies dealers (-3.1 percent). Also, food and beverage stores posted a decrease in receipts (-0.4 percent), mainly attributable to beer, wine and liquor stores (-1.8 percent). In contrast, sales at gasoline stations rose 1.5 percent, primarily reflecting higher prices at the pump. Year-on-year, retail trade shrank 0.6 percent. Retail Sales MoM in Canada averaged 0.36 percent from 1991 until 2019, reaching an all time high of 3.70 percent in December of 1997 and a record low of -4.50 percent in January of 1998. source: Statistics Canada
Retail Sales MoM in Canada is expected to be 0.20 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Retail Sales MoM in Canada to stand at 0.30 in 12 months time. In the long-term, the Canada Retail Sales MoM is projected to trend around 0.30 percent in 2020, according to our econometric models.