According to Royal Bank of Canada (RBC) Economist Abbey Xu, Canadian cardholder spending strengthened modestly in March, with underlying activity stabilizing despite continued softness in discretionary goods purchases [1]. The report highlights that a sharp increase in gasoline prices, attributed to geopolitical tensions, was a key driver in boosting spending at fuel stations and contributed to the overall strength in essential purchases [1]. Even when excluding gasoline, spending still increased in March, although the pace of growth was slower compared to February [1].
RBC's data indicates that growth in spending edged lower on a three-month average, primarily due to a pullback in January, while activity in February and March showed broad improvement [1]. Specifically, RBC’s core retail sales measure rose by 0.3% on a three-month average, up from -0.1% (seasonally adjusted), extending the gradual improvement observed since the beginning of the year [1].
No specific market reactions or analyst forecasts are mentioned in the article. The overall tone suggests a cautious but positive trend in Canadian consumer spending, with essential purchases leading the recovery amid external pressures on fuel prices [1].
CONCLUSION
Canadian cardholder spending demonstrated modest improvement in March, driven largely by higher gasoline prices and stable essential purchases. While discretionary spending remains soft, the gradual recovery in core retail sales signals ongoing stabilization in consumer activity.