Canadian retail sales likely to have grown in December

Canadian retail sales data for the month of December is set to release tomorrow. According to a TD Economics research report, the retail sales are expected to have grown 0.5 percent sequentially in the month to provide a momentum heading into 2020.

After lending a considerable tailwind to November sales, motor vehicles are likely to have exerted a modest drag, leaving a forecasted 0.7 percent rise in ex-auto sales to drive the headline print. Ex-auto sales rose for the first time in five months in November, and a wide rise in consumer goods imports bodes well for consumption going forward.

“Real retail sales should post more modest gains owing to higher consumer goods prices, which will leave sales little change on a year-ago basis, although any positive contribution to industry-level GDP will be welcome after the muted performance through the second half of 2019”, added TD Economics.