By Troy Gillard

ATB Economics says…

Consumer spending in Alberta returned to pre-pandemic levels in November

Dec 11, 2020 | 11:20 AM

While not particularly strong, consumer spending in Alberta was back to pre-pandemic levels heading into December.

According to ATB Economics, average daily spending was down by 17 per cent in April compared to February, but rebounded to sit only about one per cent below February’s level in November.

However, with inflections surging and stricter public health restrictions in place, ATB Economics predicts overall retail spending to close out the year is likely to be relatively weak.

December is an important month for retailers because sales spike as consumers stock up on gifts and supplies for the holiday season.

“It might just be wishful thinking but—despite the poor economic conditions and job losses—we could be surprised and find that shoppers splurge at least somewhat this year in response to the pall that has been cast over the holiday season by the pandemic,” ATB Economics says in its latest edition of The Owl financial newsletter.

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“More local shopping might also help mitigate some of the negative effects of the pandemic on Alberta retailers, though this might be offset by a spike in online purchases from international retailers such as Amazon.”

Not including motor vehicle dealers and gas stations, inflation-adjusted per capita retail sales in Alberta were 21 per cent lower in December 2019 than they were in December 2006 when Alberta was in the midst of a natural gas boom.