Canadian retail sales were unchanged in November from October at $46.99 billion, Statistics Canada reported on Thursday. A rise in sales at motor vehicle and parts dealers was offset by a decline in sales at food and beverage retailers.
The agency also estimated that sales may have increased 1.6% in December, based on preliminary data.
In November, sales fell in six of the nine subsectors, representing 56.7% of retail trade. In terms of volume, retail sales fell 0.4%.
On the other hand, the number of new claims for unemployment benefits in the United States rose slightly last week, suggesting that strong job growth may continue in January.
Initial claims for state unemployment benefits rose by 6,000 to a seasonally adjusted 223,000 for the week ended Jan. 18, the U.S. Department of Labor said on Thursday. Economists polled by Reuters had forecast 220,000 claims for the latest week.
Last week’s claims data also covered the period when the government conducted a survey for the nonfarm payrolls component of the January jobs report.
Nonfarm payrolls rose by 256,000 in December. The economy added 2.2 million jobs last year, an average of 186,000 jobs per month, lower than the 3.0 million expected in 2023.
The strengthening labor market was one factor that prompted the Federal Reserve to reduce its forecast for interest rate cuts this year to just two from four projected in September.
A crackdown on immigration by President Donald Trump’s new administration and plans for sweeping tax and tariff cuts, which economists say could fuel inflation, have also added to concerns among U.S. central bank officials about the direction of monetary policy. Mass deportations and restrictions on legal immigration could tighten the labor market, economists said.
No rate cuts are expected at the Fed’s policy meeting next week. The Federal Reserve has cut the overnight interest rate by 100 basis points to the current range of 4.25%-4.50% since September.
