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Need information on retail sales and
new motor vehicle sales?
Retail Sales: www.economics.gov.nl.ca/indRetail.asp
Car Sales: www.economics.gov.nl.ca/indCar.asp |
Consumer spending is a significant contributor to the local economy, accounting for over 40% of GDP. Expenditures on goods and services in the Province generate income and employment for local producers and distributors. Consumer spending is influenced by changes in disposable income, interest rates, and consumer confidence.
Retail trade, or the sale of merchandise for personal consumption, accounts for over 50% of consumer spending. The value of retail sales has grown in nominal terms (not adjusted for inflation) by over 7% in three of the past four years, and is expected to grow by 6.5% in 2001 to $4.8 billion. Even after adjusting for inflation, retail sales grew by at least 3.3% in each year since 1996 and are expected to grow by 5.0% in 2001. These growth rates are consistent with national trends.
The largest components of retail sales are motor vehicles (26% of total value in 2000); supermarkets and grocery stores (25%); general merchandise stores, such as Wal-Mart (14%); and gasoline service stations (9%). All other components such as household furnishings, clothing, and drug stores, account for a combined 26% of total retail trade.
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Photo courtesy of: The Telegram
Retail construction on Stavanger Drive, St. John’s
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Source: Conference Board of Canada; Economics and Statistics Branch, Department of Finance
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Real retail trade per capita has grown nationally and regionally over the past several years. This is due, in large part, to high consumer confidence, income growth and low interest rates. The gap between real per capita sales in this province and other jurisdictions has also narrowed, reflecting, in part, relative gains in real personal income.
Growth in big ticket items like new motor vehicle sales is generally associated with strong consumer confidence. The number of vehicles sold increased by almost 50% over the past five years. In 1996, there were 16,199 units sold compared to 23,859 in 2000. Through the first eight months in 2001, vehicle sales have grown by about 2% compared to the same period in 2000. (Nationally, sales were down by 1.4%.)
On a household basis, the number of new vehicle sales since 1996 has increased by over 40%. In 1996, there were 8.7 new vehicles sold or leased per 100 households, which rose substantially to 12.3 per 100 households in 2000.
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