RBC Canadian cardholder spending firmed modestly in March with underlying activity continuing to stabilize despite ongoing softness in discretionary goods.
“A sharp increase in gasoline prices, tied to geopolitical tensions, boosted spending at fuel stations, and contributed to strength in essentials’ purchases. Excluding gasoline, spending still increased in March, although at a slower pace than February,” said RBC.
“Growth in spending edged lower on a three-month average, largely reflecting a pullback in January with activity over February and March broadly improving.
“Our core retail sales measure rose 0.3% on a three-month average from -0.1% (seasonally adjusted), extending the gradual improvement seen since the start of the year.”
The details from RBC:
- Spending on gasoline surged 9.1% in March as conflict in the Middle East pushed oil prices higher.
- Excluding gasoline, spending still rose in March, but slowed from February, remaining weak on a three-month average.
- Clothing and related retail segments continued to contract on a three-month average, largely reflecting a pullback in January with spending firmer in the following two months.
- Service categories remained the primary source of non-gasoline related growth with entertainment and arts leading gains, reinforcing the ongoing shift toward experience-related spending.
- Provincial trends were mixed with declines persisting in British Columbia and New Brunswick, while other regions, including Quebec and Ontario, showed modest gains or stabilization.
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