Consumer spending up in Q1

Consumer spending in Canada grew by 6.24% in the first quarter of 2016 on a year-over-year basis, according to a report by Moneris Solutions Corporation.

Following a flat period in 2014, Moneris has recorded six consecutive quarters of positive spending increases. All four quarters of 2015 saw growth of between 5% and 7%. Moneris’ findings this quarter are consistent with positive economic indicators released by Statistics Canada showing GDP growth in January along with an uptick in retail sales and employment increases in March.

Consumer spending rose by 5.89% in January, 9.03% in February and 4.42% in March, compared to the first three months of 2015. All provinces posted year-over-year increases during the quarter, with the exception of Alberta. Nova Scotia posted the largest increase (11.65%) followed by New Brunswick (10.40%).

The oil-producing provinces posted growth below the national average; spending in Alberta declined by 2.99% and Saskatchewan saw an increase of 1.08%.

Credit card spending increased by 8.36% over the first quarter of 2015, holding a 64.66% share of purchases made. Debit sales rose by 2.57%, representing a 35.34% share of total card spending.

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