Canadian retail sales posted an unexpected decline in October from a record high led by falling receipts for new automobile dealers.
Sales decreased 0.1 percent to C$40.7 billion ($38.2 billion), Statistics Canada said today in Ottawa. Economists surveyed by Bloomberg News forecast a 0.2 percent increase, based on the median of 20 projections.
The decline adds to evidence of weakness in the world’s 11th largest economy, which has also seen trade deficits in 21 of the past 22 months, inflation below the central bank’s target band and slower job growth. Bank of Canada Governor Stephen Poloz is counting on a rotation of activity to business investment and exports from indebted consumers, a process he has said is taking longer than forecast.
Motor vehicle and parts sales dropped 1.9 percent to C$9.51 billion, led by a 1.6 percent drop at new car dealerships. Purchases excluding the motor vehicle and parts category rose 0.4 percent. Economists had forecast they would be little changed.
Food sales advanced 1.7 percent to C$9.15 billion, Statistics Canada said.
The volume of sales rose 0.2 percent. That measure excludes the effects of price changes and more closely reflects the industry’s contribution to economic growth.
Sales in October were 3.0 percent higher than a year earlier, Statistics Canada said.
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