RBC is out with its latest consumer spending tracker for Canada and reports on a second strong month.
- Three month average of core retail sales +0.5% m/m vs +0.7% in Sept
- Most of October’s spending strength came from entertainment and arts
- Almost all of the increase in entertainment and arts spending came from Ontario, which hosted the World Series
- RBC cardholder spending on dining remains near record highs, which also accelerated in Ontario (likely due to baseball fans going to bars)
- spending on household and construction remains among the weakest categories but hit an 18-month high
The chart that stands out to me is the incredible increase in spending on entertainment + art since the pandemic. The index has tripled. Overall, this data shows the BOC is right to be headed to the sidelines, despite the risks to housing (which might be stabilizing).
