Canadian consumer spending held up ok in February – RBC

This report is more useful when it’s released before Canadian retail sales but RBC is out today with its latest data on Canadian cardholder spending.

Canada’s largest bank said card transactions fell 0.2% in February, which is largely consistent with the -0.4% decline in the advance retail sales report.

Sales were influenced by poor February weather and the HST holiday through Feb 15. Overall though, there is tremendous angst in Canada but few indications of changed consumer behaviour.

“Spending on discretionary goods declined in February, but spending on discretionary services and essentials were little changed from January. Sales at restaurants edged higher—broadly consistent with data from OpenTable showing restaurant bookings still running 20% above year-ago levels into late March”

They also note that Ontario has recently doled out $200 stimulus cheques to every person in the province and that province leads the annual rise in spending.

Overall, it’s all a puzzle with Canadian consumer confidence at generational lows but consumer spending just fine. It’s a similar dynamic in the US and elsewhere.