Analysts at TD Securities are looking for an unchanged print in September for the Canadian retail sales as a pullback in motor vehicle sales offsets a modest increase in the core.
Key Quotes
“Motor vehicles are poised for their third decline in the last four months as consumers grapple with higher debt costs and prioritize spending elsewhere. However, we expect ex-auto sales to rebound by 0.3% m/m on a recovery in import activity as well as strong employment data.”
“Electronics should benefit from the release of new iPhone models mid-month although lower prices at the pump will weigh on gasoline station sales.”
“Real retail sales should come in at or slightly above the nominal print owing to the latter which contributed to a modest decline in seasonally adjusted consumer prices for September. This would cap off a relatively disappointing quarter for retail activity in Canada, with sales up a muted 0.5% (annualized) for Q3 as a whole, consistent with a moderation in household consumption from Q2.”
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