Albertans are still spending their money at places like West Edmonton Mall. (Canadian Press)

Albertans, confident in the state of the economy, are opening up their wallets and shopping despite signs Canada is headed for a recession.

Statistics Canada said Tuesday that retail sales across the country had rebounded by a seasonally adjusted 1.1 per cent from August, the biggest jump in eight months and much better than the 0.4 per cent economists had been forecasting.

In Alberta sales were up 1.3 percent, slightly higher than the national average of 1.1 percent.

"I feel it's a very positive signal, indicating that Canada still has a good confidence about their own economy," said Statistics Canada spokesman Claude Bilodeau.

A nearly three per cent jump in new car sales was the main reason behind the national spike in retail sales, but Bilodeau said it's too early to predict whether Canadians will continue to spend through the Christmas season.

An Angus-Reid online survey also released Tuesday concluded that Albertans were the most upbeat about Canada's economy, with 67 per cent of respondents giving a good rating to the national economy, compared to 42 per cent nationally and 29 per cent in Ontario. The margin of error in that poll was 3.1 per cent, 19 times out of 20.

'Optimistically confident'

Calgary's Chinook Centre is getting as many shoppers as last year – and possibly even more – said Peggy Lim, a spokeswoman for the shopping mall.

'Once we enjoy a certain lifestyle, it's really hard to give that up.' — Debi Andrus, University of Calgary

"I think Calgarians have been very fortunate in the economy that they are in," Lim said. "People are still optimistically confident."

Many retailers in the mall were offering discounts, but Lim said that is common for this time of year.

Debi Andrus, an assistant marketing professor at the University of Calgary, said headlines in other parts of the country don't necessarily reflect what is happening in Calgary.

"Because our industry base is energy – and then all the professions that support that – the salaries are higher. Expectations in terms of lifestyle [and] what people can afford are going to be different than, say, what's going on in Ontario, being really tied to manufacturing and the auto industry."

Nonetheless, some shoppers might still be scaling back their purchases or loading up their credit cards.

"Incomes have been rising here in Calgary, people have gotten used to spending money," Andrus said. "Once we enjoy a certain lifestyle, it's really hard to give that up."

'Well positioned to weather the storm'

The latest Organization for Economic Co-operation and Development outlook said Tuesday the world is entering the worst economic downturn in decades.

The gloomy outlook predicts Canada's economy will shrink in the fourth quarter by 1.6 per cent and in the first and second quarters of 2009 by 1.4 per cent first and 0.3 per cent respectively, meaning the country will be in recession.

Alberta can't escape the global financial meltdown, but the province is better off than most places, according to participants in a panel discussion in Edmonton on Monday afternoon.

John Ferguson, the chairman of Suncor Energy, said the Albertans will experience a slowdown, but the province is "well positioned to weather the storm ahead."

"The short-term impact on the oil and gas industry will be significant, but I believe Canada and Alberta benefit from a sound economic, a strong banking system and a stable fiscal and regulatory environment, he said.

The panel, hosted by the Edmonton Economic Development Corporation, also included Finance Minister Iris Evans, two bank representatives and the dean of the University of Alberta's business school.