This is turning into a bit of a competitive metric for the traditional retail spending indicator we get from Statistics Canada and it just might be a bit more insightful.
It comes from the banks who have begun to share what they are seeing in terms of their customers’ traffic in debit accounts and credit cards. And at least one is seeing something of an uptick in first few months of this year.
RBC calls it a ‘thawing.’
And the reason this is worth noting is that it is more comprehensive than the StatsCan data on consumer or retail spending which serve as a proxy for consumer sentiment or confidence.
What the StatsCan data don’t capture — but the banks do — centres around non-physical goods. Retail sales looks only at what we spend when buy a thing. The bank data includes intangibles and items such as travel or hotel rooms.
What RBC is seeing is the first reversal in nine quarters. It turns out we are finally loosening up the purse strings but we’re buying less stuff like furniture and more experiences.
