RBC is out with its monthly review of Canadian credit card spending. As the nation's largest bank, the number should offer clues on the strength of the Canadian consumer.
The report notes that momentum in discretionary purchases faded in May after a rise in April. restaurant sales edged slightly lower in May and were not significantly different from the end of 2023. Home renovation spending continues to be suppressed and has steadily trended lower since spring 2022.
Worryingly, travel demand among Canadians has started to flag and hotel demand is particularly weak.
"Overall, consumer spending after accounting for record levels of population growth (or on a per-capita basis) continues to weaken in Q2, alongside declines in per-capita GDP," the report says.
Canada's population crossed 41 million in April and is far outpacing any G7 country. That's kept overall spending high but points to underlying weakness that should catalyze on signs that immigration could soon rapidly slow.
