Royal Bank of Canada (RBC) Economist Abbey Xu reports that Canadian cardholder spending strengthened modestly in March, with underlying activity stabilizing even as discretionary goods remained soft. Higher gasoline prices, linked to geopolitical tensions, lifted fuel and other essential purchases. Excluding gasoline, spending still rose, though more slowly than in February. RBC’s core retail sales measure improved on a three‑month average, signaling gradual ongoing recovery.

Card data show modest March improvement

"RBC Canadian cardholder spending firmed modestly in March with underlying activity continuing to stabilize despite ongoing softness in discretionary goods."

"A sharp increase in gasoline prices, tied to geopolitical tensions, boosted spending at fuel stations, and contributed to strength in essentials’ purchases."

"Excluding gasoline, spending still increased in March, although at a slower pace than February."

"Growth in spending edged lower on a three-month average, largely reflecting a pullback in January with activity over February and March broadly improving."

"Our core retail sales measure rose 0.3% on a three-month average from -0.1% (seasonally adjusted), extending the gradual improvement seen since the start of the year."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)