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RBC: Consumer Demand Holding Up Through Holidays

CANADA
  • RBC note that Black Friday marked a strong start to the holiday shopping season in Canada as sales surged higher.
  • Spending on electronics is running below prior holiday shopping periods, but spending on apparel, gifts, books, music, and entertainment is strong and if seasonal norms hold there could be last minute jewellery shopping.
  • Their tracker of services is more mixed, with early signs suggesting a further moderation in accommodation spending but restaurant spending still running strong.
  • Ultimately though, spending is expected to soften in 2023 as interest rate hikes and inflation cut further into household purchasing power, as an important leg of their long held call for a mild recession in 2023.

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