Ontario leads Canada-wide retail decline as auto sales drop

FILE: A new vehicle for sale is seen at an auto mall in Ottawa. THE CANADIAN PRESS/Justin Tang

Canada logged a drop in retail trade in September, Statistics Canada reports, attributing the decline primarily to a fall in autos and parts sales.

The agency recorded an overall decrease of 0.7 per cent to $69.8 billion in September month-over-month.

Motor vehicle and parts dealers saw a 2.9 per cent fall in sales – the first decrease in three months – and the largest losses were among new cars. Those dealers took a 3.6 per cent hit in a boomerang from a 1.8 per cent rise in August.

Meanwhile, gas stations and fuel vendors enjoyed a 1.9 per cent rise in sales in September, the first increase for that sector in three months. In volume terms, sales at gas stations and fuel vendors fell one per cent.

Nationwide core retail sales were relatively unchanged following a 1.1 per cent gain in August.

Ontario, B.C. see slower month

Declines in the auto sector dragged Ontario’s overall sales down by 1.2 per cent – the largest regional drop out of the six provinces that posted decreases. Retail sales were down 2.3 per cent in the census metropolitan area of Toronto.

B.C. also saw retail sales fall 0.9 per cent in September, driven by a slump in building materials and garden equipment. Nova Scotia, in contrast, recorded a retail bump of 1.5 per cent – that province actually saw an increase in auto and parts sales.

First look at October

Statistics Canada provided an advance estimate of retail sales in October suggesting sales were relatively unchanged from the month prior.

It’s an estimate based on responses received from 54.2 per cent of companies surveyed, the agency wrote. It’s likely to be revised.