MNI: Canada Nov Flash Retail Sales Rise 1.2%, Most Since June

Canadian flash retail sales rose the fastest in five months in November, the federal statistics office reported Friday, more evidence the economy is avoiding the recession some investors had predicted.

That 1.2% flash gain followed an October decline of 0.2% triggered by a labor disruption at British Columbia liquor stores, and weaker than the unchanged reading expected in an MNI economist survey. 

October core retail sales, which exclude autos, parts dealers and gas, were down 0.5% for the second consecutive month as opposed to an expected no change. October retail sales volume fell 0.6%.

Sales have been on a seesaw trend in recent months and flat much of this year. Consumer spending is weighed down by U.S. tariffs and elevated unemployment, and lost momentum seen after the Bank of Canada began cutting interest rates last year. Governing Council's view now is that the 2.25% policy rate is about the right level to realize a forecast for growth of about 1% next year.