Surge in new vehicle and parts orders lead overall boost in Canadian retail sales

The sale of motor vehicles and their parts led a boost in Canadian retail numbers in October, as the new car dealership industry continued its recovery from an inventory crisis.

While overall retail sales jumped 1.6 per cent in October, to a total of $57.6 billion, core retail sales — which exclude gas station sales and automobiles, because they are seen as volatile sectors — were up 1.5 per cent. Dealerships that sell new cars had a sales increase of 2.8 per cent, according to Statistics Canada.

The numbers show that Canadian retailers did better in October than was initially expected, said CIBC senior economist Andrew Grantham. But he cautioned that the