- Nick Exarhos, CIBC
Having posted four straight monthly advances, sales in the Canadian retail sector slumped over the month of December, official data showed on Wednesday. Statistics Canada reported that retail sales nosedived 0.5% in the final month of 2016, with sales declining in 9 out of 11 subsectors. In volume terms, retail sales excluding price changes effects dropped 1.0% in the reported month. The core reading also came in worse than expected, slipping 0.3% last month compared with a 0.5% print expected by the market. The downmove was mainly caused by a plunge in new cars sales. On balance, automotive parts, accessories and tire dealers enjoyed an 18.0% bounce in sales in December, while gasoline stations saw a 6.6% increase, as prices for the fuel surged 3.1% on an unadjusted basis in the reported month. Another factor that managed to contribute to the fall in retail sales in December was slower holiday season shopping, with sales at apparel stores declining 3.7% and jewellery, luggage and leather goods stores posting a 12.4% drop in the observed period. Overall, store retailers in Canada generated $532B in sales in 2016, which is up 3.7% when compared to 2015.
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