Canadian consumer spending rises 4.52 per cent in Q3
Continues steady increase throughout 2013, according to Moneris Spending Report
TORONTO, Oct. 10, 2013 /CNW/ - Moneris Solutions Corporation ("Moneris"), Canada's largest credit and debit card processor, revealed in the Moneris Q3 Spending Report that Canadian consumer spending has increased for the third consecutive quarter in 2013, with an overall growth of 4.52 per cent compared to the same period last year. Consumer spending increased by 4.19 per cent in July, 5.53 per cent in August and 4.17 per cent in September. Q3 spending was higher than in the previous two quarters, with Q1 and Q2 seeing increases of 3.31 per cent and 3.61 per cent, respectively, in dollars spent. These findings point to an overall steady increase trend in consumer spending throughout 2013.
Contrary to Q1 and Q2 2013, the 2013 Q3 Moneris Spending Report shows that credit card spending (4.92 per cent) outpaced debit card spending (3.93 per cent), compared to Q3 2012. This trend is reminiscent of last year's debit and credit card consumer spending patterns, with credit card spending outpacing debit card spending every month in Q3 2012, except October.
The specialty retail and restaurant categories saw the highest year-over-year increases in overall spending, at 5.63 per cent and 5.48 per cent, respectively, followed by apparel (4.04 percent), household (3.92 per cent) and hotels (3.85 per cent). Within the restaurant category, drinking establishments saw an overall increase in dollars spent of 6.17 per cent, whereas fast food establishments experienced an overall growth of 8.95 per cent, compared to Q3 2012.
Within the specialty retail category, pet shops and pet food stores led the growth in spending, with an increase of 8.47 per cent, followed by sporting goods, shoe stores and health and beauty spas, where spending grew by 6.31 per cent, 6.12 per cent and 5.25 per cent, respectively.
The Prairie provinces led the growth in consumer spending during Q3. Interestingly, despite the Calgary floods at the end of June, Alberta demonstrated the highest year-over-year growth during Q3, with a 7.18 per cent increase in spending, followed by Manitoba and Saskatchewan, where spending grew by 6.63 per cent and 6.46 per cent, respectively. While, in general, Alberta tends to be a strong-performing province when it comes to consumer spending, increased purchasing activities among Albertans shopping for items lost or damaged as a result of the floods could have contributed to the overall Q3 spending increase in the province.
Newfoundland and Ontario also experienced healthy growth in Q3, compared to the same period last year, with 5.82 and 4.56 per cent spending increases, respectively, followed by Nova Scotia and New Brunswick, with 4.42 per cent and 3.38 per cent increases. Similar to Q2 2013, Prince Edward Island saw significant positive growth, which could possibly be attributed to the busy summer tourism season, with a spending increase of 5.94 per cent. British Columbia and Quebec continued to lag in spending in Q3, compared to other provinces, with modest 2.56 per cent and 2.55 per cent respective increases.
"Despite the devastating floods that occurred in Calgary in June and in Toronto in July, Q3 spending was up across all spending categories in Canada, including Alberta and Ontario," said Angela Brown, President and CEO, Moneris. "With spending on the rise throughout 2013, we anticipate this trend to continue into Q4, historically the busiest shopping season in Canada, when we expect spending to grow over the holiday period."
About The Moneris Spending Report
The Moneris Spending Report provides a snapshot of consumer spending activity in Canada by analyzing credit and debit card transaction data. As the market leader with the largest merchant base, Moneris presents detailed analysis and insight on a quarterly basis. The percentages cited are derived from actual sales volumes - the dollar values of credit and debit card transactions being processed by Moneris merchants.
About Moneris Solutions
As one of North America's largest providers of payment processing solutions, Moneris Solutions Corporation ("Moneris") offers credit, debit, wireless and online payment services for merchants in virtually every industry segment and processes more than three billion transactions, annually. Through its Ernex division, Moneris offers electronic loyalty and stored-value gift card programs. With more than 350,000 merchant locations, Moneris provides the hardware, software and systems needed to improve business efficiency and manage payments. For more information please visit www.moneris.com.
SOURCE Moneris Solutions Corporation