Canada: Retail sales to remain subdued – TDS

Research team of TD Securities is looking for the Canada’s retail sales to remain subdued with a 0.3% decline in September as softer motor vehicles sales add to a more subdued 0.1% decline in the ex-autos measure.

Key Quotes

“On a brighter note, the pickup in consumer goods imports does suggest some upside for clothing and other textiles, and the continued recovery in the housing market should support retail sales of furniture and home furnishings.”

“Real retail sales should come in below the headline print, providing a poor handoff to Q4 consumption; even though September CPI fell by 0.4% m/m, weakness was concentrated in services, and consumer goods prices rose by 0.2% m/m.”