Consumer spending up 4% in Q2

Canadian consumer spending has increased steadily since the beginning of 2012, says Moneris Solutions, Canada’s largest credit and debit card processor.

Consumers purchased less in June, but all sectors posted growth in Q2 nonetheless.

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“The Canadian economy continued to experience healthy growth in the second quarter of 2012, but some signs point to a potential reduction in spending,” says Jim Baumgartner, president and CEO of Moneris.

He adds, “The summer months usually translate into Canadians attending and spending more at national and community events.”

He predicts the level of participation and activity in Q3 will be a good indicator of consumer confidence leading into the holiday season.

During Q2, the entertainment sector saw the biggest increase in overall spending, at 9.43%. Hotels (6.75%) and restaurants (6.41%) came in close second.

The specialty retail category also saw a boost in earnings, with stationery (6.6%), florists (6.3%) and pet shops (6%) leading the way.

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Apparel—a traditionally strong category for Canadians—experienced more modest growth, only rising 2.74%.

Travel spending decreased by half a percentage point in Q2 but started to pick up as the summer months approached. While other areas dipped in June, travel companies reported an overall increase June.

Nationally, the Prairie Provinces continue to lead the economy. Alberta earned the country’s top spot (8.35% in dollars spent), followed closely by Saskatchewan (7.8%) and Manitoba (5.89%).

Credit card spending in Q2, up 7.6%, outpaced debit card spending growth by almost 4%.

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Staff

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