Canada October retail sales -0.2% vs 0.0% expected

Canada's October retail sales fell by 0.2%, missing expectations of 0.0%. This follows a downward revision of the previous month's figure from -0.7% to -0.9%. Excluding autos, retail sales declined by 0.6%, also lower than the anticipated increase of 0.2%. Core sales saw a decrease of 0.5%, which suggests a slowdown in consumer spending. However, the advance reading for November shows a strong increase of 1.2%. The data suggest that core retail sales dropped significantly in food and beverage sectors, mainly due to a strike in British Columbia, with a significant decrease of 10.6%. Additionally, retailers in clothing, accessories, and personal care experienced declines. RBC has published a report based on credit card data, indicating core sales have increased by 1.1% on a three-month moving average. RBC remarked that early signs for Q4 remain positive, with consumer spending momentum holding up despite elevated borrowing costs. It seems retirees and those nearing retirement are driving much of the spending, even as home prices have lost value since 2022. There remain sufficient jobs to keep younger generations spending despite rising unemployment.