Consumer spending gains momentum

Canadian consumer spending rose nearly 6% in the first quarter of 2015 on a year-over-year basis, according to a report by Moneris Solutions Corporation.

This marks the second consecutive quarter in which consumer spending has increased year-over-year. The end of 2014 saw a 3.84% increase in spending, breaking an unprecedented nine-month flat streak.

Read: U.S. middle class prioritizes debt, not spending

“For Canadian businesses, it was a great start to the year. Spending remained strong after the holiday season, with notable increases in the retail and restaurant categories,” says Angela Brown, president and CEO of Moneris. “Spending in these categories suggests that consumers feel confident enough to continue to spend on non-essentials.”

Read: Fewer travelers come to Canada

Additional findings include:

• spending across Canada rose by 5.78% overall;
• B.C. led the way with an 8.93% increase, with Nova Scotia posting the smallest increase a 0.40% gain;
• credit card spending increased by 6.98%; debit sales rose 3.77%;
• within the restaurant category, fast food restaurants posted the highest growth (10.90%), followed closely by bars and pubs (7.84%);
• the entertainment category posted the lowest growth (0.82%), including tourist attractions, movie theatres and recreation services; and
• stores specializing in shoes and women’s accessories were big winners, with increases of 9.32% and 7.27% respectively.

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.