Retail sales across Canada declined 0.7% in September amid ongoing signs that the economy is softening.
Preliminary data from Statistics Canada shows retail sales were flat in October of this year, another sign of weakness heading into the year-end holiday shopping season.
Retail sales totaled $69.8 billion in September, down 0.7% as sales of new cars decreased. In all, sales in September fell in six of the nine subsectors of the economy, said Statistics Canada.
The biggest impact came from sales for motor vehicle and parts dealers, which fell 2.9%, including a 3.6% decline at new car dealerships.
Core retail sales, which exclude gasoline stations and fuel vendors, along with motor vehicle and parts dealers, were unchanged in September of this year.
Sales at building material and garden equipment dealers fell 2%, while general merchandise retailers saw a 0.5% decline.
Food and beverage retailers gained 0.8%, helped by a 3.4% increase in sales at beer, wine and liquor retailers.
In volume terms, overall retail sales dropped 0.8% in September.
The September decline comes amid growing signs that Canada’s economy has been weakened
by U.S. tariffs and a soft labour market.
The Bank of Canada's final interest rate decision of the year is scheduled for Dec. 10.
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