08:47 AM EST, 11/22/2024 (MT Newswires) -- Canadian retail sales look to be getting a boost from lower interest rates, as total sales rose by a healthy 0.4% month over month in September and the increase looked even better in volume terms, at 0.8%, said CIBC.

Friday's headline was in line with consensus expectations, and gains were broad-based, with six of nine subsectors advancing, and the group excluding autos up by 0.9% month over month versus 0.4% expected, noted the bank. The good news extended into October, with the advance estimate of sales at an impressive 0.7%, which should match the volume gain given flat goods prices.

This is early evidence that lower interest rates are supporting spending, but per-capita retail sales volumes are still sitting 1.8% below year-ago levels as of September, showing that there is ample lost ground to make up, added CIBC.

The upcoming GST holiday will provide a boost for retail sales in December but it could dent activity in November as consumers delay purchases, pointed out CIBC.