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  • Consumer spending up over 6% in Canada

    Canadians are heading out to the stores and spending more money this year, especially by credit card.   

    Consumer spending in Canada rose by about 6 per cent in the first quarter of 2016 on a year-over-year basis, according to a report by Moneris Solutions Corporation.

    "So far, the increases we are seeing in 2016 fall in line with the growth trends we have observed for the past year-and-a-half," said Angela Brown, president and CEO of Moneris. "We are now moving into a period where we are building upon growth from the year before, which is an encouraging sign for Canadian businesses."

    Spending was flat for a period in 2014, but since then Moneris has recorded six quarters in a row with increases.

    In 2015, all four quarters saw growth between five and seven per cent.

    In January, spending increased by almost 6 per cent, with that number going up another 9 per cent in February and 4 per cent in March, compared to the first three months of 2015.

    All provinces besides Alberta saw increases compared to last year.

    Credit card spending increased by over 8 per cent during the first quarter of 2015. In total, almost 65 per cent of purchases were made by credit card. Debit sales rose by around 3 per cent, making up about 35 per cent of purchases.

    In Canada, tap and pay is continuing to gain popularity, with consumers using tap cards or holding up their smartphones to use mobile wallets such as Apple Pay. In total, around 25 per cent of all transactions were ‘contactless,’ compared with only 15 per cent this time last year.

    "Canadians have been quick to embrace the speed, convenience and security of tapping their cards," said Brown. "This comfort on the part of consumers, coupled with the payment infrastructure we have built here in Canada, in which most terminals can accept contactless transactions, sets us up well to take advantage of the new mobile payment options entering the market."

    The low Canadian dollar has been pushing foreign spending, with an increase of about 17 per cent in tourist dollars, mostly coming in from the U.S. 

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