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Bank of Montreal Releases Second Supplementary Prospectus for $50 Billion Bond Program
Economists: Canada's spending remained flat in the fourth quarter and sales may decline in November.
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 in the fourth quarter seems to have stagnated. Sales increased by 0.6% month-on-month in October, but volumes remained essentially unchanged, with Furniture stores and Car Dealers/auto Retailers leading the charge. Early data for November shows nominal sales flat, and Kaushik believes this may indicate a decline in volumes. Kaushik stated that more monthly data would be awaited to see if this marks a longer-term trend, although the upcoming sales tax holiday could add some noise.
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