Canadian consumers are buying less, including on credit cards, data shows

The back-to-school shopping rush did little to get Canadians spending more money as consumer spending declined in August, cardholder data from the Royal Bank of Canada shows.

While core retail sales – a measure that does not include spending on vehicles and gas – rose 0.4 per cent in August, total spending declined 2.2 per cent, the RBC report said on Tuesday.

Core retail sales were weaker compared with July, when they rose by 1.1 per cent.

“Most major spending categories saw growth—but slower—apart from clothing purchases, which accelerated. Travel spending dipped 0.1% seasonally adjusted on a three-month average,” the report said.

“The ongoing contraction in gasoline spending—continuing on a three-month average basis since the elimination of the consumer carbon tax this spring—has