Canada November retail sales up 1.3%; seen down 0.5% in December

OTTAWA, Jan 23 (Reuters) - Canadian retail sales increased by 1.3% in November to C$70.42 billion ($51.17 billion) on a monthly basis, led by food and beverage sales, Statistics Canada said on Friday.

Sales were up in eight of the nine subsectors with only sporting goods and miscellaneous retailer categories registering a slight decline. In volume terms, retail sales increased 1.1% in November.

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

• Core retail sales, which exclude gasoline stations and fuel vendors and motor vehicle and parts dealers, were up 1.6% in November.

• The largest increase to core retail sales came from food and beverage retailers, which were up 3%. The increase in this subsector was led by beer, wine and liquor retailers, which were up 14.3% in November.

• Higher food and beverage sales were also aided by purchases at supermarkets and other grocery retailers.

• Clothing, clothing accessories, shoes, jewellery, luggage and leather goods retailers were the second biggest contributor to retail sales.

• Motor vehicle and parts dealers' sales, which are the highest-contributing sector, accounting for more than a quarter of overall retail sales, grew 0.3% in November.

• In December, sales were likely down 0.5%, the agency said in a flash estimate.
  ($1 = 1.3763 Canadian dollars)