Consumer spending up 6.08 per cent
By Bakers Journal
By Bakers Journal
July 23, 2015, Toronto – Canadian consumer spending rose just over six per cent in the second quarter of 2015 on a year-over-year basis, according to the MonerisMetrics Quarterly Report released by Moneris Solutions Corporation (“Moneris”), one of North America’s largest processors of debit and credit payments.
This is the third consecutive quarter in which consumer spending in Canada has increased. This quarter’s growth is on par with the first quarter of 2015, in which consumer spending increased 5.78 per cent.
“The consumer spending trends we witnessed in the first quarter of the year, in particular the strong increases in restaurant, retail and home improvement spending, maintained their momentum throughout the spring,” said Angela Brown, president and CEO of Moneris. “The first half of this year has been great for Canadian businesses, and hopefully sets a positive tone for the balance of the year.”
According to Moneris, spending across Canada rose by 6.08 per cent overall, with increases of 6.41 per cent in April, 4.82 per cent in May and 6.65 per cent in June. All provinces posted increases in year-over-year spending during the quarter. British Columbia posted the strongest growth for the second consecutive quarter with a 9.21 per cent increase, followed by Ontario at 8.17 per cent. Alberta posted the smallest increase (1.96 per cent) followed by Quebec (3.69 per cent).
Credit card spending increased by 8.17 per cent over the same quarter last year, holding a 58.84 per cent share of purchases made. Debit sales rose by 3.08 per cent, representing 41.16 per cent of total card spending.
International Spending Up
Spending on foreign credit cards increased by 14.08 per cent over the second quarter in 2014 – more than double the overall rate of increase.
“The low dollar has made Canada a comparatively affordable destination for foreign tourists, particularly our neighbours to the south,” said Brown. “With the additional interest rate cut announced last week, this is a trend we expect to continue in the near future.”
Significant Gains in Restaurant and Home Improvement Spending
Impressive gains in restaurant and home improvement spending suggest consumer confidence remained high in the second quarter of the year. The restaurant category overall posted a 7.82 per cent increase year-over-year. Within the category, fast food restaurants led the way with a 12.54 per cent increase, followed by bars and pubs (7.24 per cent) and dine-in restaurants (5.59 per cent).
A trend from Q1 continued as Canadians spent more on improving their homes this spring. Home improvement stores posted an overall increase of 9.62 per cent. Sales on glass, paint and wallpaper grew by 11.94 per cent, and floorcovering sales grew by 10.32 percent.
Retail Sector Remains Healthy
While all retail categories saw increases year-over-year, stores specializing in women’s accessories posted the biggest gain, growing by 10.10 per cent. Spending in pet stores was up significantly as well, with an 8.80 per cent increase.
Apparel sales were up 5.00 per cent overall, with women’s clothing sales seeing the biggest increase at 7.73 per cent. Spending on sporting apparel increased by 4.53 per cent, followed by family clothing (3.88 per cent) and men’s clothing (3.20 per cent).