MNI: RBC Eyes Canada Recovery With Card Use Down Just 2% YOY

By Greg Quinn

     OTTAWA (MNI) - The Royal Bank of Canada says consumer spending is

recovering with the mid-June value of credit and debit card transactions just 2%

less than year-ago levels, aided by the re-opening of personal services like

haircuts.

     Gasoline and automotive service transactions nearly matched year-ago

levels, as the most severe health lockdowns eased, data produced by the bank

suggests. Hotel, airline and car rental spending remained about 75% lower from a

year ago. 

     Spending had plunged by almost 40% at the start of April and recouped about

half of those losses a month later, RBC tracking using anonymous card data

shows. Online retailers are holding on to most of the 80% jump in transactions

seen in May from a year earlier. 

     The RBC report is consistent with TD Bank's earlier finding that spending

using its cards was down 4% in mid-June from a year earlier.

--MNI Ottawa Bureau; +1 613-314-9647; email: greg.quinn@marketnews.com

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

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