Highlights of the August retail sales report from StatsCan:

  • Prior ex autos was -0.6% (revised to -0.5%)
  • Overall retail sales -0.3% vs 0.0% exp
  • Prior was -0.1%
  • Second straight month of declines after 6 months of gains
  • +0.1% excluding motor vehicle and parts dealers and gasoline stations

The soft retail sales report sparked an immediate quarter-cent jump in USD/CAD to 1.1255. There’s talk of offers in the 1.1270/80 zone.

This report isn’t as bad as it seems, gasoline sales were a big drag (-2.1%) and if you strip that it it’s very close to expectations. However, looking through the numbers a 5.0% drop in home furnishings stands out because it’s a leading indicator of consumer confidence but it’s somewhat balanced out by a 1.1% rise in electronics and appliances.

Canadian retail sales ex autos

Canadian retail sales ex autos