Canadian consumers increased spending in September and October, despite high interest rates

Retail sales rose 0.8% in September and 0.6% in October, exceeding expectations.

Car and parts dealers saw the highest sales growth, up 1.5% in September.

Excluding autos, retail sales rose 0.2%.

Core retail sales, excluding gas stations and car dealers, were down 0.3% in September.

Bank of Canada is expected to hold borrowing costs at 5% due to a softening economy.

Ontario saw the largest provincial increase in sales, led by car dealers.

Manufacturing sales declined 2.7% in October, with decreases in petroleum, coal, machinery, and transportation equipment subsectors.