Canadian retail sales fell 0.1 per cent to $61.8 billion in November

OTTAWA –

Canadian retail gross sales edged down in November amid a broad shopper spending pull again because the rising value of residing continued to erode buying energy.

Statistics Canada mentioned Friday retail gross sales dropped 0.1 per cent to $61.8 billion in November.

While the lower wasn’t as pronounced as anticipated — the company’s early estimate for the month predicted a 0.5 per cent drop — different measures present a much bigger drop.

Retail gross sales in quantity phrases, which measures the amount of products offered and controls for value adjustments resulting from inflation, decreased 0.4 per cent in November.

Core retail gross sales, which exclude gasoline stations and motorcar and elements sellers, dropped 1.1 per cent — the most important decline in 11 months.

Still, the federal company’s early estimate for December suggests retail gross sales rebounded barely up 0.5 per cent for that month, although it cautioned the determine can be revised.

“Canadian consumers continue to prove resilient in the face of aggressive rate hikes,” BMO economist Shelly Kaushik mentioned in a shopper observe.

“Retail sales came in better than expected in November, with the headline decrease helped by higher prices as volumes posted a larger drop.”

Meanwhile, retail gross sales decreased in six of 11 subsectors, representing 47.4 per cent of retail commerce, Statistics Canada mentioned.

The lower was led by decrease gross sales at constructing materials and backyard tools and provides sellers, down 3.8 per cent from the earlier month, and meals and beverage shops, down 1.6 per cent.

Supermarkets and different grocery shops, excluding comfort shops, noticed gross sales droop 1.3 per cent in November — a month when costs of meals bought from shops rose 11.4 per cent on a year-over-year foundation, the company mentioned.

Sales at normal merchandise shops fell 0.8 per cent, a big drop given one of many largest buying occasions of the 12 months — Black Friday — is in November.

Retail e-commerce gross sales had been down 2.7 per cent in November on a seasonally adjusted foundation.

Sales had been up 1.4 per cent at motorcar and elements sellers in November, led by greater gross sales at new automobile sellers up 1.2 per cent — the quickest tempo of development since June 2022.

The enhance adopted greater imports of motor autos and elements within the second quarter of 2022.

Sales at gasoline stations had been up 2.2 per cent in November, although in quantity phrases gross sales had been up 3.7 per cent.

This report by The Canadian Press was first revealed Jan. 20, 2023.