With the F1 Grand Prix approaching, Montreal is preparing to welcome a flood of visitors… and spending. But what’s really happening with consumer spending here and across the country?
In anticipation of a summer where every dollar counts, we asked Moneris, which processes one in three transactions in Canada (five billion transactions analyzed annually!), to help us decode current trends. Winning sectors, unexpected declines, weak signals: it’s all covered.
Q: Nationally and in Montreal, how has consumer spending evolved from one year to the next?
A: With so many external factors influencing the Canadian economy, it’s not surprising that consumer spending in Canada only saw a slight increase in the first few months of 2025, compared to the previous year. Nationally, the total volume of consumer spending in Canada increased by just over one percent. Quebec also saw a similar percentage increase.
Conversely, Montreal recorded a slight decline in overall spending. This decrease could be explained by a variety of factors. For example, major cities and densely populated areas in Canada experienced extreme weather this year, which may have impacted spending. Montreal was no exception: the city experienced record snowfall and extreme cold. It’s also important to note that February had an extra day the previous year, due to a leap year.
Q: How much did foreign visitor spending decrease here?
A: At the beginning of 2025, foreign visitor spending decreased slightly, with overall foreign spending down nearly seven percent across Canada. This is likely due to a decline in spending from the top five foreign sources: China, the United Kingdom, France, and Australia. The only exception was the United States, where spending increased by one percent.
Montreal is a popular tourist destination. With foreign spending declining across the country, the city may be more vulnerable to declines in international travelers. Overall, the volume of foreign spending in Montreal saw a more pronounced decline, reaching almost 10 percent. This decline is consistent with the national trend.
Q: What were the strong and weak points in spending this quarter?
A: Looking at the main business categories in Montreal, professional services (such as accounting firms, charities and social organizations, dental practices, insurance brokers, trades, etc.) saw a moderate year-over-year increase in the number of transactions. The “Specialties” category (which includes several sectors such as clothing stores, gas stations and convenience stores, golf courses, grocery stores, household products, etc.) saw an increase in both the volume and size of transactions. This trend indicates that while consumers are making fewer purchases, each one tends to be slightly larger.
As some foreign spending indicators have shown, economic uncertainty has led many Canadians to reduce their discretionary spending. In Montreal, spending in the entertainment and restaurant sectors decreased by seven to nine percent. This decline is partly explained by a decrease in the number of transactions and the size of purchases, as consumers go out less and spend less during those outings.
Q: What can we expect for spending around the 2025 F1 Grand Prix?
A: If the results of the 2024 Canadian Grand Prix are a reliable indicator, we can expect an increase in tourism and foreign spending in the country in 2025, with foreign spending increasing week over week in 2024. The largest increases were observed in traditional tourism sectors, such as restaurants and hotels.
The only exception to this trend is that foreign spending at tourist attractions in Montreal decreased. This could be explained by several factors. For example, certain weather events such as heat waves or thunderstorms may discourage visitors; race fans may have chosen to focus their time and money solely on the race; or other city-wide events prior to the Grand Prix may have attracted more spending.
Q: Finally, are you already seeing seasonal trends emerging for the summer?
A: With the announcement of US tariffs and a notable decline in arrivals to Canada (according to Statistics Canada), economic uncertainty has pushed the consumers to reduce their discretionary spending, particularly on travel and leisure, both down almost seven percent.
However, as the summer season approaches, consumer spending appears to be shifting toward greater support for the local economy, with Canadian patriotism on the rise. This could translate into a boost in local spending, as Canadians choose to prioritize travel and domestic businesses.