Vancouverites spent 14% more on retail products in November than they did in the same month a year ago, according to new Statistics Canada data.
Across B.C., sales increased 11.5% over the same period, making it the province with the highest 12-month jump across the country. New Brunswick came in a distant second with 8.6%, followed by Alberta at 7.4%.
The Canadian average increase was 6.5% year-over-year. The growth was driven in part by higher sales at electronics and appliance stores and general merchandise stores, but the biggest increase was seen in at gas stations. Part of the rise was related to an increase in gas prices.
“Statistics Canada noted that the increase in electronics sales in particular looked to have been boosted by new product launches and promotions like ‘Black Friday’ sales,” RBC senior economist Nathan Janzen said in a note to investors. “That means some of the sales increase in November may prove to have been at the expense of sales in December and/or January.
“Nonetheless, with labour markets continuing to improve at a rapid pace through the end of the year, there are also good reasons to think current underlying trends in retail demand — and indeed, the rest of the economy — remain solid.”
Benjamin Reitzes, strategist at BMO Capital Markets, pointed out that part of the surge in Black Friday sales was due to the release of the latest iPhone. Overall, he said, the gain in volumes of sales across the board, combined with strong manufacturing and wholesale activity, mean GDP for November is on pace to reach the 0.4% increase that has been forecast.
“That would place the risks squarely on Q4 GDP growth coming in below the Bank of Canada’s 2.5% call and closer to 2%,” he said.
@EmmaHampelBIV
