Canada: Retail Sales to rise 0.4% - TDS

Analysts at TD Securities are looking for Canada’s retail sales to rise 0.4% on the strength of motor vehicles, which should provide a tailwind to an otherwise lackluster report.

Key Quotes

“This should leave ex. auto sales little changed on the heels of a 0.9% m/ m advance in July. Gasoline station sales will be a slight drag on growth owing to lower prices at the pump while building material sales should suffer from a slowdown in residential construction.”

“Real retail sales should see more modest gains on higher consumer prices, which fits with a slower pace of household consumption on the heels of unchanged retail volumes in July and a sharp pullback in import activity.”