Canadian consumer spending grows in second quarter
Fast food saw the greatest increase of 11.25 percent in dollars spent by Canadian consumers
Moneris Solutions announced recently that the Canadian retail economy saw a 3.8 percent increase across the country in consumer spending, compared to the same period last year and surpassing the first quarter of 2011.
The Moneris Spending Report shows that spending accelerates as summer approaches, with the largest growth of 5.06 percent in June followed by 4.38 percent in May and 2.42 percent in April.
Apparel was the runner-up category, with men's and women's clothing, and sports apparel increasing 11.1 percent and 6.33 percent respectively.
Consistent with the spending trend seen in the last three quarters, fast food saw the greatest increase of 11.25 percent in dollars spent. Apparel was the runner-up category, with men’s and women’s clothing, and sports apparel increasing 11.1 percent and 6.33 percent respectively.
Across all categories, the average purchase amount for both credit and debit card remained constant compared to the previous quarter at $115.67 and $48.00, respectively.
Regionally, this is the first quarter where all provinces saw positive growth since the third quarter of 2010. Saskatchewan was the leading province with an increase of 6.66 percent in dollars spent, followed by Quebec with a growth of 5.84 percent and Ontario at 3.46 percent. The smallest growth was seen in British Columbia, which still showed a respectable growth of 1.75 percent compared to the same period in 2010.
The second quarter includes several special events and holidays that boosted consumer spending. Mother’s Day and Father’s Day weekend led to an 8.11 percent and 1.75 percent growth respectively in dollars spent compared to their previous weekends. During Mother’s Day weekend, florists saw a 297.43 percent growth.
In Toronto, the inaugural Ultimate Fighting Champion event and Luminato led to week-over-week spending growths of 19.24 percent and 6.86 percent respectively by restaurant patrons. In Montreal, the Grand Prix drove growth in the hospitality industry, resulting in 25.54 percent and 117.42 percent increases in restaurants and drinking places respectively.
“The first two quarters have shown positive growth for the Canadian economy,” says Moneris Solutions President and Chief Executive Officer Jim Baumgartner. “With the continuous growth from the beginning of the year to date, we anticipate the momentum will continue into the second half of 2011.”
Category: Living
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