Canada: Retail sales roared back in August then took another breather in September – CIBC

Data released on Friday showed an increase in August retail sales in Canada of 2.1%, slightly above the 2% expected. For September preliminary data points to a contraction. According to analysts at CIBC markets won't take much joy in the August increase in retail sales, with the flash estimate of September looking weaker than anticipated and coming alongside a similarly disappointing manufacturing print for that month.

Key Quotes: 

“Retail sales roared back in August, but then took another breather in September. With a yo-yo in sales continuing into the end of the third quarter, the level of sales in September was back where it stood in June and July. That said, while goods sales continued to be plagued by the global semiconductor shortage, the employment data suggested that services sectors appeared to be gaining strength heading into the end of the quarter. As a result, we continue to expect that the economy was able to continue to soak up more slack in September.”

“Statistics Canada's flash estimate of September retail sales revealed an ugly 1.9% retreat after the rebound in August. The separately-released sneak peak of manufacturing sales for the same month showed a similarly dreadful drop of 3.2%. Both, appear to have been impacted by the supply crunch in the auto sector, with the factory report directly referencing the transportation equipment industry as the main source of weakness.”

“The ugly flash readings for retail sales and manufacturing will dent our previously heady GDP forecast for the month. However, while goods sectors were plagued by supply chain challenges, according to the Labour Force Survey data, activity across a range of services sectors was increasing. The federal election would have helped GDP during the month too. As a result, we're still comfortable forecasting that the economy expanded by roughly 0.5% during the month.”

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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD eases below 1.1300 amid firmer yields, Fed’s Powell eyed

EUR/USD remains pressured towards 1.1250, reversing 2021’s biggest daily gains as the US dollar rebounds with the Treasury yields. Global scientists, policymakers placate fears of Omicron even as national border checks return to the table. German inflation, central bankers’ speeches eyed.


GBP/USD remains vulnerable below 1.3350 amid USD strength, Brexit woes

GBP/USD is trading below 1.3350, lacking any firm directional bias heading into the European session. Renewed USD buying acts as a headwind for the major amid Brexit and covid-related uncertainties. Expectations for a BoE rate hike limit the downside.


Gold faces a wall of resistance en-route $1,800

Gold price rebounds but not out of the woods yet while below $1,800. Omicron covid variant woes will continue to play out, impacting USD and gold.

Gold News

MATIC price eyes 15% advance as Uniswap prepares to migrate to Polygon

MATIC price recently swept the swing lows of a crucial barrier. This development comes as the cryptocurrency market recovers from the COVID-induced crash over the past three days.

Read more

Black Friday 2021 Discounts!

Do you want to take your trading skills to the next level? Now you have a chance of leaping forward at attractive introductory rates. For Black Friday, FXStreet is offering discounts of up to 50% on its upgraded Premium plans. 

Subscribe now!