OTTAWA - The economies in both Canada and the U.S. are growing faster than many anticipated, with new numbers suggesting both countries are in the midst of a classic strong recovery from recession.

Canada's gross domestic product advanced 0.4 per cent in November from the previous month, one-tenth of a point higher than the consensus expectation, Statistics Canada reported Friday.

Meanwhile, the f2ederal agency dramatically revised upwards its monthly gross domestic product numbers for September and October, which had initially disappointed. The revisions put the September GDP advance at 0.5 per cent, up from 0.4, and October at 0.3, up from 0.2.

Based on those numbers, Scotiabank economist Derek Holt said Canada's economy is now seen to have advanced 6.2 per cent at an annualized rate in September, 3.7 per cent in October and 4.9 per cent November.

That roughly matches the annualized 5.7 per cent GDP growth recorded by the United States in the October-December quarter, which also beat the consensus prediction by more than a full point.

"This is one of the most convincing signs so far that the Canadian recovery is for real and neatly dovetails with the robust U.S. GDP result," said Douglas Porter, deputy chief economist with BMO Capital Markets.

"The Canadian economy does indeed appear to be gathering momentum, despite some recent disappointments on the employment front," Porter said.

Holt said both economies appear to be showing signs of a classic V-shaped rebound from the deep recession, at least in the short term.

The Canadian numbers, especially the September and October revisions, caught economists by surprise, many having already pencilled in a modest recovery in the second half of 2009.

Now, with Canada's December data still to come, they say the Bank of Canada's forecast of a 3.3 per cent annualized growth for the fourth quarter of 2009 is well within reach and may even have underestimated the rebound.

"The revisions are a game-changer in evaluating the first stage of Canada's economic recovery," said Holt.

Also back in play is whether both the U.S. Federal Reserve and Bank of Canada will move early to raise foundation interest rates from near-zero levels.

Central banks move to tighten monetary policy when they fear economic growth becomes so strong it will lead to inflation and the creation of asset bubbles, particularly in the housing market. Long-standing easy money following the post-9-11 downturn has been blamed for encouraging reckless borrowing that contributed to the recent financial crisis.

But the return to growth is unlikely to cause either Canada or the U.S. government to withdraw stimulus measures, at least until employment level rebound.

The U.S. is still shedding jobs and, while labour markets appear to have stabilized in Canada, there is little reliable evidence of net job growth.

Thursday, Statistics Canada issued new data that cast doubt on the only monthly jobs gain of the last quarter. And the Conference Board's index tracking help-wanted ads released Friday suggested that near-term employment prospects remain problematic. The index was up in 10 municipalities, stable in two, and down in 15.

Canada's GDP growth for November was concentrated in a few industries, with mining and oil-and-gas extraction and wholesale trade accounting for about 60 per cent of the advance. Still, most sectors showed gains.

Even manufacturing surprised by posting a flat reading, although it remains by far the weakest sector -- 10.6 per cent lower than a year ago.

While the fall numbers were surprisingly strong, they are unlikely to change the overall outlook of how the recovery from recession will unfold.

Economists had been expecting a short-term burst in the fall as firms moved to restock after shutting down production in the spring and summer.

But economist say long-term prospects for growth remain contingent on household spending. Many believe record debt levels will keep consumers on the sidelines for most of this year and perhaps next as well.