Rising orders for new vehicles and parts lead to overall growth in retail sales in Canada
Sales of motor vehicles and their parts drove higher retail sales figures in Canada in October, as the new car dealership industry continued to recover from an inventory crunch.
While overall retail sales jumped 1.6% in October, to $ 57.6 billion, core retail sales – which exclude gasoline station sales and automobiles, as they are considered volatile sectors – rose 1.5%. Dealers who sell new cars recorded a 2.8 percent increase in sales, according to Statistics Canada.
The numbers show that Canadian retailers did better in October than initially expected, said Andrew Grantham, senior economist at CIBC. But he warned the economy could worsen, as provinces tighten restrictions across the country to limit the spread of the Omicron variant of COVID-19.
“Even though these restrictions have focused more on bars, restaurants, gyms and other such services, rather than retailers at this point, public concern over the recent outbreak is still likely to disrupt attendance and stimulate online shopping again, ”Grantham said. .
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Early numbers and unofficial figures indicate there was another 1.2 percent increase in retail sales in November, according to Statistics Canada, which said that estimate would be revised.
Gas sales down
Although the increase was noted in seven of the 11 retail trade subsectors, sales at motor vehicle and parts dealers rose 2.2%, with new car dealer sales leading the way with an increase of 2.2%. 2.8% increase. Automotive manufacturing and wholesaling recorded higher sales.
Gas stations fell 0.1 percent in revenue in October and sales were down 3.2 percent in volume terms. Gas prices rose five percent in October, according to the consumer price index.
Driven by higher sales at motor vehicle and parts dealers, Ontario and Alberta experienced two of the largest increases in retail trade in October, the former registering a sales increase of 1.9% . Alberta recorded its largest increase in retail sales – 3.8% – since January 2021. Overall, nine provinces saw an increase in retail sales in October.