06:05 AM EST, 11/26/2025 (MT Newswires) -- Canadian consumers continue to hang in there, supported by interest rate cuts during a "tumultuous" year of trade uncertainty with the United States, said Bank of Montreal (BMO).

The September retail sales report extended a volatile pattern, with a decline in volumes pulling the quarterly spending drop to an annualized 1.2%, noted the bank.

These figures point to a pullback in consumer spending growth when the Q3 real gross domestic product report is released on Friday, stated BMO.

Although the consumer story has been a positive one for the Canadian economy, the prospects of further support on this front seem more limited, according to the bank. The federal government has already cut the personal income tax rate in Q3 and has used much of its remaining fiscal room to fund priorities elsewhere.

The Bank of Canada has been telegraphing that it is near the end of its easing cycle, although past cuts are still making their way through the economy.

The hope is that efforts to stabilize and diversify the economy will bear fruit by then, allowing the recovery to gain momentum into next year, added BMO.