OTTAWA (Reuters) - Canadian retail trade is set to rise in November after beating analyst estimates in October, led by higher sales at motor vehicle and parts dealers as the effects of semiconductor chip shortages eased, Statistics Canada data indicated on Tuesday.
In a flash estimate, Statscan forecast that retail sales would increase by 1.2% in November after rising 1.6% in October. Analysts had predicted a 1.0% gain in October.
"Today's October and advance November data show that the economy probably had more momentum than we previously thought at the end of last month," said Andrew Grantham, senior economist at CIBC Capital Markets, in a note.
Grantham added that the outlook for the economy has since taken a turn for the worse, with rising Omicron coronavirus cases and a re-tightening of restrictions potentially denting consumer activity.
Retail sales increased in seven of 11 subsectors in October, representing 59.9% of retail trade, Statscan said. Retail sales excluding autos were up 1.3%, below analyst estimates of 1.5%.
The Canadian dollar was trading 0.2% higher at 1.2920 to the greenback, or 77.40 U.S. cents.
(Reporting by Julie Gordon in Ottawa, additional reporting by Fergal Smith in Toronto, Editing by William Maclean)