Economist Shelly Kaushik from the Bank of Montreal pointed out that after some strong signs in Canadian retail sales over the past few months, spending seems to have stagnated in the fourth quarter.
In October, sales increased by 0.6% month-on-month, but the volume remained relatively unchanged, with furniture stores and car dealers leading the way. Early data for November shows nominal sales flat, and Kaushik believes this may indicate a decline in sales volume.
Kaushik stated that more monthly data would be awaited to see if this marks a longer-term trend, although the upcoming sales tax holiday may add some noise.
