MNI: Canada Retails Keep Bouncing Around With Sept Flash Fall

Canadian retail sales continued their back-and-forth pattern this year with September's advance estimate down 0.7% and an August gain of 1% led by autos, reflecting the boost from lower interest rates and the drag on confidence from the U.S. trade war.

Sales have grown 4.9% over the 12 months through August even with companies reluctant to hire as President Donald Trump uses tariffs to force jobs across the border into the U.S. from Canada. 

Weakness outside consumer spending such as investment and exports has economists betting the Bank of Canada will cut interest rates for a second meeting next Wednesday. The retail report showed signs that lower borrowing costs are aiding consumer confidence, with August sales led by a 2.3% gain in new car purchases that are often financed through loans. 

Sales advanced in six of nine major categories in Statistics Canada's report Thursday. Excluding auto and parts dealers sales rose 1.1%. The overall August sales gain matched the view of economists in an MNI survey.

StatsCan also reported Thursday the number of jobless benefit recipients was little changed for a second month in August after climbing 12% in the first half of the year. The agency's flash estimate of factory sales showed a 2.8% gain for September led by transportation equipment, petroleum and coal.