Canadian department store sales fell 3.2% in September to $1.7 billion, the lowest level recorded in 2002.

“Much of September’s weakness could be attributed to warmer than usual weather during the month, a factor that also hampered back-to-school sales in the U.S. Given the weakness in department store sales, retail sales for September (due November 22) will likely be dragged down, adding to already flat results in both July and August,” say economists at RBC Financial Group.

“Still, Canadian consumers are in better shape than their American counterparts, owing to, among other things, a significantly stronger labour market this side of the border. Nevertheless, the softer tone of some recent economic releases such as this one, even if transitory, should help to support the Bank of Canada’s decision to hold off on interest rate hikes.”