Canada: Goods spending got a major boost from car sales in Q4 – National Bank of Canada

Source Fxstreet

November's retail sales report was rather disappointing. Not only did good spending stagnate over the month but, as prices rose, this translated into a 0.4% decline in sales volumes, NBC ecnomists report.

Canada car sales in Q4 hive a major boost to goods spending

"Outlays of items correlated with the housing market continued to fall, as did spending on food. On a more positive note, auto sales saw another solid expansion in November and were on track to grow by no less than 19.1% in annualized terms in the fourth quarter (18.2% in real terms). These good times may not last, however."

"Remember that several subsidy programs for the purchase of electric or hybrid vehicles expired in January, which probably encouraged many car buyers to pull the trigger at the end of last year. We therefore expect a significant slowdown in this category in the first quarter of 2025. But in the meantime, the large increase in spending at dealerships will translate into a significant contribution to Q4 GDP growth from goods consumption."

"Including the December advance reading, we indeed estimate that retail sales volumes rose by no less than 4.9% annualized in Q4, the best performance in a year. Excluding cars, however, sales volumes may have contracted during the quarter, highlighting the extent to which sales were driven by a single category in the final quarter of last year."

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Ethereum Price Forecast: ETH tests $3,000 following strong ETF and treasury inflowsEthereum (ETH) climbed above $2,900 on Thursday, mimicking the rally seen in Bitcoin.
Author  FXStreet
Yesterday 01: 36
Ethereum (ETH) climbed above $2,900 on Thursday, mimicking the rally seen in Bitcoin.
placeholder
Bitcoin's surge to new all-time high sparks $1 billion in short liquidationsBitcoin (BTC) traded above 4% on Thursday after soaring to a new all-time high above $116,800. The rally, which appears to be leverage-driven, triggered over a $1 billion short-squeeze across the entire crypto market.
Author  FXStreet
Yesterday 03: 24
Bitcoin (BTC) traded above 4% on Thursday after soaring to a new all-time high above $116,800. The rally, which appears to be leverage-driven, triggered over a $1 billion short-squeeze across the entire crypto market.
placeholder
Japanese Yen dives back closer to weekly trough against a broadly firmer USDThe Japanese Yen (JPY) drifts lower against a broadly stronger US Dollar (USD) during the Asian session on Friday.
Author  FXStreet
Yesterday 03: 45
The Japanese Yen (JPY) drifts lower against a broadly stronger US Dollar (USD) during the Asian session on Friday.
placeholder
Dogecoin (DOGE) Rockets to $0.20 — Can It Go Even Higher?Dogecoin started a fresh increase above the $0.180 zone against the US Dollar.
Author  NewsBTC
Yesterday 06: 41
Dogecoin started a fresh increase above the $0.180 zone against the US Dollar.
placeholder
Gold price approaches weekly high as tariff jitters boost safe-haven demandGold price (XAU/USD) is gaining positive traction for the third consecutive day on Friday and approaching the top end of its weekly range amid rising trade tensions.
Author  FXStreet
Yesterday 06: 43
Gold price (XAU/USD) is gaining positive traction for the third consecutive day on Friday and approaching the top end of its weekly range amid rising trade tensions.
goTop
quote