Date: October 25, 2010
Canadian Retail Sales, August 2010 Release
Source: Statistics Canada
Link to Release: http://www.statcan.gc.ca/daily-quotidien/101022/dq101022b-eng.htm
Summary: By dollar volume, retail sales rose 0.5 per cent in August after running level for the two previous months. Six of the eleven major retail subsectors recorded gains. The most significant increase was a 2.1 per cent advance in the value of sales at gasoline stations. Decreases were noted at used car dealers (down 0.5 per cent) and furniture stores (down 0.4 per cent). By province, Alberta saw the largest increase, with sales up 1.5 per cent; in Ontario they rose 0.3 per cent after two months of flat sales.
Analysis: Retail sales have been trending upward in Canada and Ontario since the beginning of 2009, following the steep decline in 2008. It is important to note, however, that the recovery in retail sales has been subject to monthly volatility and this will likely continue moving forward. On balance, the economic situation in Canada continues to improve, albeit at a slower pace compared to late 2009 and early 2010. Given that the value of retail sales has more less recovered to pre-recession levels, it is possible that the annual growth rate in retail sales may moderate. One of the drags on retail sales over the past few months has been slower activity in the housing sector. Since the spring, there have been fewer resale transactions in comparison to 2009. As a result, retail transactions related to housing, including furniture, appliances and home improvement supplies, have declined in some cases or grown at a slower pace.
Source: Toronto Real Estate Board