I have been keeping an eye on RBC cardholder spending data for the past couple years and it’s an increasingly-useful and timely measure of Canadian retail sales.
The latest version is just out and it paints a mixed picture. Core sales rose a solid 0.4% m/m in August but the headline fell 2.2% m/m. Dragging down the headline was s dip in gasoline prices.
Spending on clothing along with the ‘arts and entertainment’ categories accelerated while the ‘household and construction’ category softened slightly. Spending at grocery stores has been largely flat since May.
RBC economist Rachel Battaglia focused on the rise in core sales.
“This trend aligns with our broader economic outlook . We believe Canada’s economy will resume slow, but positive, GDP growth after a Q2 decline with relatively resilient consumer spending offsetting persistent headwinds in the industrial sector,” she wrote.
On net, I take this data as a solid indication for the loonie.
This article was written by Adam Button at investinglive.com.