Wholesale trade in Canada has seen steady growth for the third consecutive month in September, primarily driven by increased sales of motor vehicles and parts.
According to Statistics Canada, wholesale sales rose by 0.4% to 83.07 billion Canadian dollars ($60.67 billion) on a seasonally adjusted basis. This figure exceeded the agency’s initial estimate of no change for the month. It is worth noting that there was a downward revision of 1.8% in wholesale transactions recorded in August.
In terms of volume, or price-adjusted terms, wholesale sales saw a 0.5% increase in September, as reported by the data agency. On a yearly basis, nominal wholesale sales witnessed a growth of 1.6%.
For the third quarter, wholesale sales experienced a 1.0% increase, largely attributable to the motor vehicle and motor vehicle parts and accessories segment. Wholesalers, which are a significant component of Canada’s services sector, serve as intermediaries between producers and consumers, as well as handle the import and redistribution of goods.
Out of the seven wholesale sectors monitored by Statistics Canada, four saw an increase in sales last month. Sales of motor vehicles, parts, and accessories rose for the third consecutive month, with a 2.2% increase. Additionally, food, beverage, and tobacco sales saw a monthly increase of 1.6%. However, the miscellaneous subsector experienced a decline of 2.1% in sales.
Wholesale inventories experienced a drop of 1.6% to C$126.23 billion during September. This decline was primarily driven by a decrease in machinery, equipment, supplies, as well as building materials and supplies.
Considering wholesale sales by petroleum, oilseed, and grain merchants – Statistics Canada’s headline measure – wholesale sales for September stood at C$131.42 billion, representing a 0.7% increase.
Retail sales data for September is scheduled to be released by Statistics Canada on November 24.