Consumers and their wallets were a driving force for the B.C. economy in September as retail sales raced to a record high and restaurant receipts remained elevated.While short of the national gain of 0.8%, B.C. retail sales growth accelerated from August by 0.5% in September, lifting dollar-volume activity to about $5.62 billion.
This was the third increase over a four-month period, and after a temporary loss of steam at mid-year, the sales uptrend has resumed.
The robust pace of recent sales propelled year-to-date growth to 5.8% through the first three quarters, trumpingthe national performance by nearly a full percentage point. Growth has been led by a 6.8% gain in Metro Vancouver with a lower but still healthy gain of 5% elsewhere in the province.
The retail sector has posted broad-based gains this year owing in part to a lift in hous- ing activity and vehicle sales. Motor vehicles and parts, home furnishings, sport- ing/recreation and general merchandise posted growth that was near or above 9%.
In contrast, sales of building materials (0% growth) and gasoline were relatively weaker. Retail sales volume is fore- cast to end the year 5.6% higher compared to 2013. Momentum is expected to ease in the final quarter and into 2015.
Total retail sales growth is forecast to dip to about 4% in 2015.While consumers splurged at the sales counter, spending at restaurants, bars and coffee shops backtracked after a stronger August gain.
Sales fell 1.3% to $747.5 million in September compared with a 2.5% gain during the previous month. However, activity remained on an upward trend, with monthly sales up 6.1% from a year ago.
Year-to-date growth has reached 7.6%.
The sector is likely benefiting from a modest pace of growth in the economy and a recovering tourism industry.
Bryan Yu is an economist at Central 1 Credit Union
