Canada: Consumption spending set for a sharp rebound in Q3 – NFB
|Data released on Friday showed retail sales rose in Canada for the fifth month in a row in September, climbing by 1.1% above the 0.2% of market consensus. National Bank of Canada analyst Jocelyn Paquet points out that following September’s gains, spending stood above pre-crisis levels in nine of the 11 retail sub-sectors covered.
Key Quotes:
“The September retail sales report came in much stronger than expected. Not only was the headline number significantly better than what analysts had anticipated, but gains were also widespread across categories.”
“Following September’s gains, spending stood above pre-crisis levels in 9 of the 11 retail sub-sectors covered.”
“Looking at quarterly data, sales volumes soared 117.7% in annualized terms in Q3, marking the steepest expansion on records. This should translate into a healthy contribution to growth from household spending on goods in the quarter.”
“It remains to be seen if consumer spending will be sustained in the fourth quarter (and beyond) given rising caseloads and government-mandated closure of non-essential businesses in several provinces.”
“In real terms, Canada’s retail sales advanced 1.1%. Statistics Canada’s early estimate for October nominal sales was flat (+0.0%).”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.