Statistics Canada says retail sales rose 0.5 per cent to $43.6 billion in August, boosted by higher sales at motor vehicle and parts dealers.
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For the third quarter as a whole, retail sales rose by 0.9 per cent, up from 0.8 per cent growth in the second quarter, and offering a few hope that consumer spending supported Britain’s economy as a whole over a period when export demand faltered.
Commenting on the figures, Phil Mullis, partner and head of retail and wholesale at accountancy firm, Wilkins Kennedy, said: “Despite England’s early exit in the World Cup, there would still have been a spike in sales as the Rugby fever took hold”. Barclays notes, the ONS press release that historical revisions to the series were “primarily caused by re-referencing the indices to 2012 = 100 to align with the National Accounts estimates (only affecting volume data) and the annual seasonal adjustment review”.
“Sales volumes rose by 1.9% on the month, which is the largest amount since December 2013, with falling prices in food and alcohol components contributing to a 2.3% gain”.
“Retail sales continued their recent ascent in August”, said TD Economics’ Brian DePratto.
The ONS said average store prices, including petrol stations, were down 3.6% on September last year, the 15th consecutive month of year-on-year falls.
Inflation, which has been hovering around zero over the past year, turned again negative last month.
Dan Wagner, founder and chief executive of Powa Technologies, added: “We can expect sales to ramp up ahead of Black Friday, Cyber Monday and of course, Christmas”.
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“The fourth quarter is of vital importance to retailers, and it will be interesting to see how aggressive they are in their discounting this year in the run-up to Christmas”, he said.
