The Toronto Blue Jays may have lost the World Series in heart-breaking fashion, but the economy is coming out a winner, as the team’s playoff run apparently fuelled a surge in consumer spending, according to new data from Royal Bank of Canada.
Based on data from the bank’s clients, consumer spending rose in October, despite ongoing economic concerns — including labour market weakness, slowing population growth, high household debt levels and persistent trade uncertainty.
“The Blue Jays in the World Series provided a notable lift to discretionary spending, particularly in Ontario, underscoring consumer appetite for experiences even amid economic headwinds,” the bank said in a report.
Spending by RBC’s cardholders remained positive across all major spending categories, the bank said, with the strength in spending concentrated in the “entertainment and arts” category.
Nearly all of the increase in spending in the entertainment and arts category came in Ontario, which hosted nine baseball playoff games in the month, plus one in November.
In the dining category, spending growth slowed in October, “although RBC cardholder spending on dining remains near record highs,” it said. And, in Ontario, spending in the category picked up in the month, “a pattern likely influenced by World Series excitement.”
Conversely, growth in the “household and construction” category remained weak relative to the other major categories, the report said, “likely reflecting subdued homebuying and renovation activity.”
Yet, the report noted that there are “encouraging signs of life” in the household and construction category, which has slowly gained momentum in recent months.
“This uptick coincides with early signs of housing market stabilization, though it remains too early to declare a sustained recovery for this spending category,” it said.