Canadian consumer spending strengthened broadly in April - RBC

RBC is out with its monthly Canadian consumer spending tracker and the picture is positive, with spending increasing across almost all categories.

Retail sales, excluding motor vehicles, experienced significant growth during the month, largely driven by an uptick in home-related purchases, sporting goods, and clothing. These trends indicate a broader seasonal trend as Canadians prepare for summer, according to the April spending tracker from RBC. The metric is based on the credit card data of Canada's largest bank.

They noted that spending on the category of home furnishings, renovation materials, and garden supplies saw its first notable increase in a year, while building materials accounted for nearly a third of April’s overall spending increase. Other strength was in hotels and restaurants.

The lone categories that saw decreases were groceries, gasoline, and miscellaneous goods.

Overall, RBC doesn't think the strength in spending will last: