Canadian Auto Sales Boosted Retail in October

Canadian retail sales rose far more than expected in October, posting their biggest increase in nine months as consumers bought more new and used cars, data from Statistics Canada showed on Thursday.

The 1.5 per cent increase handily topped forecasts for a gain of 0.3 per cent and was the strongest performance since January. Stripping out the effects of price changes, volumes were also strong, up 1.4 per cent.

usdcad Canadian dollar graph, December 21, 2017

Seven of the 11 sectors had sales increases and accounted for 79 per cent of retail trade.

“It’s a dangerous game doubting the Canadian consumer, and analysts got burned for forecasting lackluster October retailing results,” CIBC Economist Nick Exarhos wrote in a note to clients Thursday.

Motor vehicle sales contributed the most to the gain, up 3.3 per cent as Canadians continued to purchase cars. Vehicle sales have been robust this year, putting 2017 on track to hit 2 million for the first time, according to an industry forecast.

via BNN

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza