British Columbia’s retail sales totalled almost $6 billion in August, representing an increase of 1.4%—the highest provincial increase in Canada for the month—according to data released by Statistics Canada October 22.
Year-over-year, B.C. also saw the country’s highest growth, with retail sales growing 7%. Sales in Ontario also increased (up 5.4%), while sales shrank in Alberta (down 2.9%) and Saskatchewan (down 2.3%).
“That’s consistent with the rotation of growth away from commodity-producing provinces to more export-oriented provinces,” said Benjamin Reitzes, BMO Capital Markets senior economist and vice-president, economic research, in a note to investors.
By comparison, Canada-wide sales grew for the fourth month in a row, up 0.5% to $43.6 billion in August and 2.8% over the past 12 months. Nationally, August sales beat analysts’ expectations, with motor vehicle and parts sales leading the way with a 2% jump to $11 billion. Excluding the auto sector, total retail sales were flat in the month.
Other sectors that saw growth were furniture (up 3%), clothing and accessories (up 0.3%) and food and beverages (up 0.5%).
“Retail sales continued their recent ascent in August,” said TD Economics’ Brian DePratto. “The key support to sales provided by low interest rates and gasoline prices was joined in August by the retroactive payment of universal child-care benefits in late July, which undoubtedly helped to support sales growth for August.”
DePratto said this latest report supports the Bank of Canada’s outlook released yesterday, which forecasts 2.5% growth in Q3 2015. He said TD continues to expect overnight rates to hold steady until the first half of 2017.
