Canadian retail sales down 0.4% in December, led by drop in vehicles, parts

Canadian retail sales decreased by ‌0.4 per cent in December to $70-billion on a monthly basis, led by a drop in ⁠sales ​at motor vehicle and parts dealers, Statistics Canada said on Friday.

Sales were down in three of the nine subsectors with the building ​materials category and furniture, ‌electronics and appliances retailers category also reporting a drop in sales. Sales at fuel pumps helped offset some of the fall, Statscan said.

In volume terms, ‌retail sales ​were unchanged ‌in December.

Retail sales, which include domestic sales ​of cars, furniture, food and gasoline, ⁠are considered an early indicator of gross ⁠domestic product growth and contribute around 40 per cent ​to total consumer spending.

Core retail sales, which exclude gasoline stations and fuel vendors and the motor vehicle and parts dealers, were down 0.3 per cent in December.

The motor vehicles ⁠and parts dealers’ category, which accounts for more than one-fourth of total retail sales, fell by 1.6 per cent to $18.71-billion.

The second biggest contributor to retail sales is the ⁠food and beverage retailer category. Sales were ​unchanged in December in this subsector.

Building materials ⁠dropped by 4 per cent and the furniture and appliances category registered ‌a 1.7-per-cent month-on-month drop.

In January, sales were ​likely up 1.5 per cent but this number is likely to be updated next month, the agency said in a flash estimate.

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