Canada’s Retail Sales Rose 0.5% In December

Holiday shopping drove Canada’s retail sales 0.5% higher in December from November.

Statistics Canada said that the December increase in retail sales followed a 0.1% decrease in November.

Retail sales in November were brought lower by declines in sales of food and beverages, as well as building material and garden supplies.

The December increase more than offset the losses in November and add to a 1.3% increase in October, ending the final quarter of 2022 with fairly strong retail sales throughout Canada.

The data shows that household spending in Canada is holding up better than many economists expected, a development that could delay an economic recession.

Economists are forecasting an economic contraction in the first two quarters of this year, which would meet the technical definition of a recession