New data from RBC indicates that Canadian consumer spending experienced a significant uptick during the second quarter. This growth was not solely driven by elevated gasoline prices; cardholder spending, excluding transactions at gas stations, climbed by 2.4% over the quarter. This trend suggests a broader increase in consumer activity across various sectors.
A notable aspect of this report was the 3.7% rise in discretionary spending compared to the first quarter. Categories such as household and construction purchases recorded their first quarterly gain since mid-2025, coinciding with emerging indicators of renewed interest from homebuyers. Additionally, spending on clothing and apparel strengthened, recovering from a slow start earlier in the year.
For retail forex and CFD traders, understanding consumer spending trends can offer insights into the health of a national economy and potentially influence currency valuations. Stronger consumer spending often signals economic resilience, which can be a supportive factor for a country's currency, like the Canadian Dollar (CAD).
Sectoral Spending Highlights
- Household and construction purchases showed their first quarterly increase since mid-2025.
- Spending on clothing and apparel strengthened following a subdued beginning to the year.
- Food and drink vendor spending surged during the World Cup period, reaching 12.5% of total cardholder spending, a record high since 2018.
RBC economists express a cautiously optimistic outlook, anticipating continued consumer spending into the latter half of the year, despite ongoing high energy costs. Upcoming retail sales reports, including Canada's June data on August 21 and the US report this Friday, will provide further clarity on these trends.
Overall, the data points to a resilient Canadian consumer base, with spending expanding beyond essential items and showing strength in discretionary categories, which could have broader implications for economic performance.
📰 Based on reporting from: ForexLive →