The December retail sales report from Canad came in below expectations on Friday. According to National Bank of Canada analysts, Kyle Dahms, consider retail sales could lose some momentum during the first quarter of 2021.
Key Quotes:
“The December retail sales report came in weaker than expected, with headline outlays falling at their fastest monthly pace since April but remaining 2.1% above their pre-pandemic peak. A decline in December was expected as provinces took measures to limit the spread of COVID-19 by limiting in-person shopping.”
“Looking at the annual picture, retail sales in 2020 were 1.4% lower than 2019, the worst performance since the ‘08-‘09 recession but surprisingly resilient given the circumstances.”
“Given the continuation of measures to limit the spread of COVID-19 going into January, we expect retail sales to lose some momentum in the first quarter of 2021. Already the preliminary estimate of Statistics Canada suggested spending fell sharply in January.”
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