Canada’s retail sales rose for a second consecutive month in November as supply chain issues eased and consumers ramped up their spending.
Retailers sold 1.2% more goods in November, according to a preliminary estimate by Statistics Canada. That’s on top of a 1.6% gain in October on strong automotive sales.
The numbers underscore how consumers are ready to spend and leading growth in the second half of this year. Data released late last month showed that consumer spending jumped by an annualized 18% in the third quarter ended September 30, the second biggest increase going back to the early 1960s.
The data may also bolster confidence that Canada’s economy is adapting to global supply chain problems, finding ways to get around shipping port closures and microchip shortages.
The spread of the Omicron variant of COVID-19 has prompted some regions of Canada, notably Quebec, to reimpose measures to curb the virus such as closing gyms and bars. This could dent consumer confidence and move shopping online again.
The gain in October was led by higher automotive sales, as supply chain disruptions were less pronounced during that month, according to Statistics Canada. Sales were up in seven of 11 categories tracked by the government agency.
