EN 
April spending snapshot: RBC Canadian cardholder spending remained relatively resilient in April, despite record-low consumer sentiment in March that showed little improvement in April.
Purchases increased broadly across categories on the heels of a 0.7% gain in retail sales, according to Statistics Canada’s preliminary estimate, which is consistent with our earlier tracking of card transactions.
Early data indicates retail sales largely maintained their gains in April (0.8%), despite partial reversals in vehicle sales following March’s surge. Reduced spending at gas stations after the April 1 consumer carbon tax elimination was an anticipated headwind which mechanically held back spending on essentials in April. Still, stronger services spending brought total RBC cardholder spending even higher, marking a 2% increase from March.
Spotlight on spending: Canadians aren’t holding back on discretionary services
Discretionary categories showed particularly strong growth with spending on goods (2.1% month-over-month, seasonally adjusted) offsetting recent declines. Discretionary services spending picked up momentum up 2.5% with maintained strength in food and dining (2.2%), and entertainment and art (2.5%). Spending on travel remained an outlier, dipping 1.9% from March on a seasonally adjusted basis as better weather and growing reservations about the U.S. kept Canadians close to home.
Spending at gas stations dipped as carbon tax rolled off
Spending on essentials also rebounded (1.6%) in April after two consecutive monthly declines—though increases were more muted than discretionary categories. Gasoline spending—the third largest category we track—fell 1.3% from March, reflecting the end of the consumer carbon tax on April 1. Consumers likely purchased higher volumes of fuel, but total spending still slumped as after-tax prices declined.
Consumer spending perks up in most provinces
The continued recovery in spending in April was broadly consistent across provinces with most jurisdictions seeing gains from March. Prince Edward Island and Newfoundland and Labrador bucked the trend with spending dipping 7.8% and 3.5%, respectively. We caution against reading too much into monthly fluctuations due to data volatility—especially in provinces with smaller sample sizes.
Saskatchewan (5.8%) and British Columbia (3.1%) posted the most notable jumps in overall spending—led by an uptick in household and construction-related purchases. A recovery in this segment would be particularly critical for B.C., given the construction sector was a significant source of weakness in its economy last year. Construction-related spending in B.C. has been gaining momentum since late 2024 with current levels hitting the highest point in a year.
About the Author:
Rachel Battaglia is an economist at RBC, providing forecasts for the Canadian provincial economies and analyzing key trends in housing and consumer spending.
This article is intended as general information only and is not to be relied upon as constituting legal, financial or other professional advice. The reader is solely liable for any use of the information contained in this document and Royal Bank of Canada (“RBC”) nor any of its affiliates nor any of their respective directors, officers, employees or agents shall be held responsible for any direct or indirect damages arising from the use of this document by the reader. A professional advisor should be consulted regarding your specific situation. Information presented is believed to be factual and up-to-date but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the authors as of the date of publication and are subject to change. No endorsement of any third parties or their advice, opinions, information, products or services is expressly given or implied by Royal Bank of Canada or any of its affiliates.
This document may contain forward-looking statements within the meaning of certain securities laws, which are subject to RBC’s caution regarding forward-looking statements. ESG (including climate) metrics, data and other information contained on this website are or may be based on assumptions, estimates and judgements. For cautionary statements relating to the information on this website, refer to the “Caution regarding forward-looking statements” and the “Important notice regarding this document” sections in our latest climate report or sustainability report, available at: https://www.rbc.com/community-social-impact/reporting-performance/index.html. Except as required by law, none of RBC nor any of its affiliates undertake to update any information in this document.
