Canadian Retail Sales See Sharp But Potentially Short-Lived Rebound in September
• Canadian retail sales jumped 0.8% in September, the biggest increase since April, following an unexpected 0.6% rise in August
• Sales were up in 4 of 9 retail subsectors, led by a 1.5% increase at car and parts dealers
• Excluding autos, retail sales rose 0.2%, exceeding expectations of a 0.1% decrease
• Despite the sharp rebound in headline numbers, core retail sales fell 0.3%, suggesting consumers cut back on discretionary purchases
• The data indicates the pickup in demand will likely be temporary given high interest rates and mortgage renewals, supporting the Bank of Canada's decision to hold rates