Retail sales reached $66.5 billion in September
Despite mounting pressure from multi-decade-high interest rates and a cooling economy, Canadian consumers posted a surprising level of spending in recent months, according to the national statistics agency.
Data from Statistics Canada showed that retail sales grew by 0.6% to $66.5 billion in September, with sales activity up in four of nine subsectors. Overall retail sales volume grew by 0.3%.
The increase was spurred by a surge in activity involving motor vehicle and parts dealers (up by 1.5%), more than compensating for the 0.3% decrease in core retail sales during that month.
“Also contributing to the increase in retail sales in September were higher sales at gasoline stations and fuel vendors (+3.2%),” StatCan said. “In volume terms, sales at gasoline stations and fuel vendors increased 2.3%.”
The largest provincial increase was registered in Ontario (up by 0.3%), despite Toronto sales falling by 0.6%.
RBC Economics study shows Canadian spending slowing due to debt pressures. While spending is steady, early signs of weakness coincide with a slight unemployment rate increase.https://t.co/r5amlMW8vO#mortgagenws #mortgageindustry #householddebt #economy
— Canadian Mortgage Professional Magazine (@CMPmagazine) August 11, 2023
A recent analysis by RBC said that evidence of ever-slower economic activity is mounting, pulling down the likelihood of additional hikes by central banks.
Among developed economies, the trend is especially apparent in Canada “where key indicators like per-capita GDP, and the unemployment rate are already tracking closely to early stages of historical recessions,” RBC said.
“There are growing signs that the Canadian economy is buckling under the weight of higher interest rates and prices.”
