"After some strong months, today's release won't change our third-quarter forecast much. But it will mean that the fourth quarter, which is likely the decisive quarter for the Bank of Canada on whether to ease (rates) or not, will get a weak hand-off".- Nick Exarhos, CIBC
Canadian retail sales advanced in September, amid higher auto sales, official data shoed on Tuesday. According to Statistics Canada, sales climbed 0.6% to a seasonally adjusted C$44.38 billion ($33.08 billion) in the reported month, following August's upwardly revised gain of 0.1%. Furthermore, sales increased 0.6% in volume terms and 2.5% year-over-year. However, even though retail sales increased markedly in September, the figure came in below analysts' expectations for an increase of 0.7%. The September growth was mainly driven by a 2.4% sales rise posted by the motor vehicle and parts dealers subsector. Moreover, a new measure revealed e-commerce accounted for 2.1% of total sales in September on a seasonally adjusted basis, after advancing 2.0% in the previous month. Core retail sales, which exclude sales of automobiles, came in at 0.0%, whereas the prior month's number was revised up to 0.2% from the originally reported reading of 0.0%. Economists anticipated a rise to 0.6% during September.
As a result, the Greenback rose to 1.3425 against the Canadian Dollar, compared to 1.3409 ahead of the release. Back in the Q3, the Canadian economy expanded
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