Retail sales in Canada increased last October, according to new data published by Desjardins on Friday.
The credit union cooperative nevertheless made it known that “we should not rejoice too quickly”, via its press release, since the 0.6% increase turns out to be below a tenth of a point of Statistics Canada's expectations.
However, it is the automotive sector, particularly for the sale of vehicles and parts, which is at the origin of “a large part of the progression”. We also indicate an increase of 2%.
“Core sales, which exclude gasoline and automobiles, rose a modest 0.2%. Growth in Canadian nominal retail sales has now exceeded 0.5% for four months in a row.
But Desjardins maintained that “the details of today’s publication are, however, less encouraging.”
“The monthly gain in October was mainly a question of price,” it was explained. Indeed, retail sales in real terms remained roughly stable in October, after solid growth in Q3.”
Based on these results, Desjardins anticipated a possible reduction in the key rate during the Bank of Canada's next announcement at the end of January. However, it would be less important than the other two previous ones.
“With inflation at 1.9% in November and a lot of economic uncertainty on the horizon, we expect the Bank of Canada's key rate cut in January to be more modest [25 points de base]after the two significant reductions in October and December,” indicated the cooperative.
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