Canada September retail sales down 0.7%; seen unchanged in October

OTTAWA, Nov 21 (Reuters) - Canadian retail sales fell in September, reversing a positive trend last month, as consumers spent less in buying cars, automotive parts and building materials among others, data showed on Friday.

Retail sales fell by 0.7% to C$69.81 billion ($49.47 billion) on a monthly basis after a 1% growth in August, Statistics Canada said on Friday.

Sales were down in six of the nine subsectors, representing 66.2% of retail sales. In volume terms, retail sales decreased by 0.8%.

Retail sales, which include domestic sales of cars, furniture, food, gasoline, are considered an early indicator of gross domestic product growth and contribute around 40% to total consumer spending.

• Sales were likely unchanged in October, the agency said in a flash estimate.

• Retail sales were up 0.2% in the third quarter. In volume terms, quarterly retail sales were down 0.3%.

• Sales at motor vehicle and parts dealers, which account for over a quarter of retail sales fell by 2.9%, for the first time in three months. Sales at new car dealers led the decrease with a drop of 3.6%.

• The building material subsector saw sales in September decline by 2%.

• Sales at food and beverage retailers, which is the second biggest contributor to retail sales, increased by 0.8%.