Sales numbers dropped, but the last quarter of 2019 still offers hope.

Rebekah Young, Director, Fiscal & Provincial Economics, Scotiabank Economics is reporting that Canadian auto sales fell by 3.9% y/y (nsa) in September. 

Young further explains the many reasons behind the slump in sales, including an early Labour Day weekend, flat fleet sales (which therefore did not offset the decline in retail sales), and a spike in financing costs.

That said, Scotiabank’s report assures dealers that the last quarter of 2019 may not be as bad as it looks. “Continued strength in job and wage growth should partially offset some of the headwinds facing consumption as the year advances,” Young added.

She concludes: “The year-to-date sales rate sits at 1.94 mn saar units, in line with our 2019 sales forecast.”