Canadian Data Looking Worse

According to the numbers released today, the Canadian economy is in a worse position than both the public and economists previously believed.

The following was reported today (Wednesday):

Core Retail Sales -0.3% vs 0.3% expected

Retail Sales -0.3% vs 0.0% expected

Leading Index -0.2% vs 0.1% expected

It’s interesting to note the decline in both automotive and clothing sales. It appears that Canadians aren’t too nervous yet, as although they may have cut down on large discretionary items, basic necessities are up from the previous month. This may signal that Canadians aren’t yet compelled to cut back AND save that money. Instead they have just shifted their spending dollars around and slightly cut back over all. Also note that a big chunk of the decline came from lower sales at gasoline stations.

Please note that this data is from August and in today’s climate that is a little too delayed. That being said it is the most recent data that we have.

Official Source (Statcan)

Also take a look at how the currency is reacting to sharply lower commodities, bad economic numbers and a stronger USD.

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