One key gauge of economic performance continued on the march, surpassing even the rosiest of economist expectations.
Figures released this morning by Statistics Canada show retail sales in November rose a stronger-than-expected 0.6% which more than reversed the unrevised 0.1% decline in October. Expectations going into the report were for a more modest monthly increase in November of 0.2%. Expectations of higher retail sales in the month were based on earlier reports of a moderate increase in motor vehicle sales and higher gasoline prices. In the event the motor vehicle component rose a slightly stronger-than-expected 1.2% with sales at gasoline stations rising 1.0%.
Excluding the volatile motor vehicle and gasoline station components, sales rose 0.3% which unexpectedly managed to add further to the outsized 0.8% gain in October. The increase in so-called core sales was helped by a 6.4% surge in sales at electronic and appliance stores along with a 1.8% gain in furniture stores and a 1.1% rise in sales at clothing stores. These increases helped to offset declines in sales at building material stores (1.5%) and food stores.
"The gain in retail sales volumes," according to experts at RBC Economics, "along with most other services sectors expected to maintain recent trend increases, November GDP is forecast to continue to rise though with the rate moderating to 0.1% from the 0.3% gain in October."
