Canadian retail sales grow strongly in October, consumer spending to support economic growth in 2018

Canadian retail sales grew strongly in October. It rose a robust 1.5 percent, following an upwardly revised gain of 0.2 percent in September. The gain was almost because of volumes, which rose 1.4 percent. Higher sales at motor vehicle and parts dealers mainly drove the October gain but sales excluding motor vehicle and parts dealers were also up 0.8 percent.

Sales rose markedly at food and beverage stores, general merchandise stores, health and personal care stores and electronics and appliances stores. Housing-related sales were a mixed bag in October. Region wise, sales rose in every province, with Quebec, Ontario and British Columbia accounting for the majority of the gain in the month.

With consumers in high spirits amidst low unemployment and rising wages, retail sales volumes rose strongly in October. The strong rise in real retail spending is in line with the view that real GDP growth accelerated in the fourth quarter, noted TD Economics in a research report.

“Looking ahead to 2018, we expect consumer spending to play an important role in supporting economic growth, buoyed by continued employment and income growth. However, some moderation from 2017's breakneck pace is likely, especially as interest rates continue to normalize”, added TD Economics.

At 19:00 GMT the FxWirePro's Hourly Strength Index of Canadian Dollar was neutral at 30.7223, while the FxWirePro's Hourly Strength Index of US Dollar was slightly bearish at -54.2647. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex

FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest