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