Consumer spending gains annual 3.88% in Q2

Consumer spending rose at a faster annual pace in Q2, according to data provided by Moneris Solutions, indicating growing confidence in the Canadian economy.

Moneris says spending in Canada rose by 3.88% in dollar volume during the quarter from the same period a year earlier. The firm reported more moderate annualized growth of 3.46% in Q1.

Regionally, all provinces posted spending growth, with the exception of Newfoundland and Labrador and Saskatchewan, which were down 0.22% and 1.71% respectively. Quebec posted the strongest annual gain in the quarter, with spending up 5.75%.

Read: When Canada’s rebound will lose steam

International card spending in Canada rose 10.98% in the quarter from a year earlier, with most of the activity from U.S. cards and American tourists taking advantage of the exchange rate.

Spending from China surged 24.62% from a year earlier, making the Asian economy the second highest contributor to foreign spending growth by volume.

Mexico was third, with a 66.31 % increase in card spending in Q2, Moneris says.

“We expect to see a continuation of moderate growth for the balance of the year as the economy shows signs of stabilizing and the Canadian dollar rises to stronger levels,” Angela Brown, chief executive of Moneris, says in a statement.

Also read:

Time for neutral on Canadian equities

Why Canada’s recovery is still tenuous: IMF

Staff

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