The Canadian economy bounced nicely after the recession in Q2, brought to you by the lock-downs. During summer the situation reversed, as the country reopened and retail sales posted some strong numbers, but they are fading as the autumn reports come out.

Headline sales cooled off to 0.4% in October as today’s report showed, while the core sales fell flat at 0%. So, they are cooling off and should turn negative in the coming months, as the restrictions due to the coronavirus increase again in Canada. USD/CAS is retracing higher, after the sales report came out.

Canada October Retail Sales Report

• October retail sales 0.4% vs. 0.0% estimated
• September sales were 1.1%, revised to 1.9%
• Core retail sales excluding auto 0.0% vs 0.1% estimated
• Previous core sales were 1.0%, revised to 1.9%
• 6 straight increases
• Gains were led by motor vehicle and parts dealers
• Core sales saw Sporting goods, hobby and book and music store sales increased 11.8%, Furniture and home furnishings rose 6.6%, building materials and garden equip rose 2.9%
• Sales were up in 6 of 11 sub-sectors representing 50.9% of the retail trade
• Volume terms saw sales increase 0.2% in October.