Canadian consumers appear to have kept their wallets open through the summer months, according to spending data drawn from major bank accounts, offering a fresh signal of resilient consumer confidence heading into the fall.
Consumer spending makes up the largest share of overall economic activity in Canada, which is why banks, businesses and policymakers pay close attention to shifts in household spending habits. Two of the country’s largest banks, TD and RBC, have begun sharing insights based on tracking credit and debit card transactions across their client bases, giving a real-time window into how Canadians are allocating their money.
What the Bank Data Shows
TD’s latest analysis found that spending held a healthy pace through much of the summer, even after accounting for the effect of higher gasoline prices on overall totals. The bank observed that households pulled back somewhat on purchases of physical goods, but were willing to spend more freely on services such as entertainment and recreation. Travel spending was also noted to be building momentum as the summer progressed.
RBC’s review of August account activity produced closely aligned findings. The bank reported that businesses in the travel, recreation and entertainment sectors found steady demand from customers, while spending on essential goods remained stable over the period.
A Signal for Businesses and Policymakers
Taken together, the two banks’ observations point to a consumer base that, at least through the summer, was willing to spend on experiences and travel even as it moderated purchases of everyday goods. Because consumer activity carries such weight in the broader economy, this kind of spending data is used by businesspeople and policymakers alike as an indicator of where household confidence stands.
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