The sale of┬аmotor vehicles┬аand their parts┬аled a┬аboost in Canadian retail numbers in October, as the new car dealership industry continued┬аits recovery from an inventory crisis.
While overall retail sales jumped 1.6 per cent in October, to┬аa total of $57.6 billion, core retail sales тАФ which exclude┬аgas station sales┬аand automobiles, because they are seen as volatile sectors тАФ were up 1.5 per cent. Dealerships that sell new cars┬аhad a sales increase of┬а2.8 per cent,┬аaccording to Statistics Canada.
The numbers show that Canadian retailers did better in October┬аthan was initially expected, said CIBC senior economist Andrew Grantham. But he cautioned that the economy may take a turn for the worse, given that provinces are┬аtightening┬аrestrictions across the country to limit the spread of the Omicron variant of COVID-19.
“Even though these restrictions have focused more on bars, restaurants, gyms and other such services, rather than retailers at this stage, public concern regarding the recent outbreak is still likely to be disrupting footfall and driving more shopping activity online again,” Grantham said.
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The automaking industry was hit hard when a global microchip shortage┬аmade it difficult to manufacture new cars. That’s why new car dealerships┬аsaw a decline in sales in August and September тАФ┬аbut sales ticked upward in October, signalling a reprieve.
Early and unofficial numbers indicate there was another┬а1.2 per cent increase in retail sales in November, according to Statistics Canada, which said that estimate would be revised.
Gas sales down
While the┬аincrease was noted in seven┬аof 11 retail subsectors, motor vehicle and parts dealers’ sales increased by 2.2 per cent, with┬аnew car dealer sales leading the way with the┬а2.8 per cent increase. Both automotive manufacturing and wholesale trade enjoyed higher sales.
Gas stations┬аwere down 0.1 per cent in receipts during October and sales were down 3.2 per cent in volume terms. Gas prices increased by five per cent in October, according to the Consumer Price Index.
Propelled by higher sales at motor vehicle and parts dealers, Ontario and Alberta had two of the highest retail boosts in October, with the former enjoying a 1.9 per cent sales increase. Alberta took in its largest retail sales increase тАФ 3.8 per cent тАФ since January 2021. Overall, nine provinces had a retail boost in October.
