Canadian retail sales likely to have dropped in September

Canadian retail sales data for the month of September is set to release tomorrow. According to a TD Economics research report, the retail sales are likely to have remained weak with a 0.3 percent fall in September. Weaker sales of motor vehicles add to a more subdued 0.1 percent fall in the ex-autos measure, with lower gasoline prices putting a modest headwind to nominal sales at the pump.

Meanwhile, the pickup in consumer goods imports imply some upside for clothing and other textiles, and the continued rebound in the housing market should underpin retail sales of furniture and home furnishings.

“Real retail sales should come in below the headline print, providing a poor handoff to Q4 consumption. This reflects a 0.2 percent m/m increase in consumer goods prices in September, despite headline CPI falling by 0.4 percent m/m owing largely to weakness in services”, added TD Economics.