Canada Retail Sales Increase 0.4% in September

Canadian retail sales grew by 0.4% in September, reaching $66.9 billion, marking the first quarterly increase of the year, primarily driven by gains in the food and beverage sector. Core retail sales, excluding motor vehicles and gasoline, surged by 1.4%, indicating a robust recovery from previous declines. Although the overall retail landscape has shown positive signs, experts caution against premature celebration, as the growth reflects a recovery rather than a sustained upward trend. Looking ahead, Statistics Canada's preliminary estimate for October indicates a further 0.7% increase, fueled by home-related purchases and the anticipated impact of a proposed GST/HST tax holiday. The Bank of Canada has also played a role in stimulating consumer spending by cutting interest rates, which has contributed to a rebound in retail activity. Overall, the data suggests that Canadian consumers may have regained some footing in the second half of the year after facing pressure from inflation and high interest rates.