Canadian Wholesale Trade Up In July With Personal, Household Sectors Leading Gains
Dean Popplewell | Sep 24, 2018 09:26
Wholesale sales rose for the third time in five months, up 1.5% to $63.9 billion in July, more than offsetting the 0.9% decline in June. Sales were up in four of seven sub-sectors, representing approximately 66% of total wholesale sales.
The personal and household goods; food, beverage and tobacco; and motor vehicle and parts sub-sectors led the gains in July, while the miscellaneous sub-sector posted the largest decline.
In volume terms, wholesale sales increased 1.2%.
Increase in July attributable to higher sales in four of seven sub-sectors
The personal and household goods sub-sector rose for the second consecutive month, up 4.2% to $9.2 billion in July. Sales were up in five of six industries, led by the textile, clothing and footwear, and personal goods industries. In volume terms, sales in the sub-sector increased 4.6%.
Following two consecutive months of declines, sales in the food, beverage and tobacco sub-sector were up 2.6% to $12.0 billion, mainly on the strength of higher sales in the food industry (+2.4%). The gain in July was partly attributable to an increase in prices as sales in the industry were up 1.6% in volume terms.
Sales in the motor vehicle and parts sub-sector increased 2.4% to $11.1 billion, the first gain in four months. While increases were reported in all three industries, the motor vehicle industry (+2.0%) contributed the most to the overall gain in July.
Of the three sub-sectors posting declines in July, the miscellaneous sub-sector was the largest contributor, edging down 0.2% to $8.2 billion. Two of the sub-sector’s five industries declined in July, accounting for approximately 41% of the sub-sector’s sales.
Sales up in six provinces
Sales increased in six provinces in July, which together represented 97% of total wholesale sales in Canada. Quebec and Ontario accounted for most of the gain.
Sales in Quebec increased for the third time in four months, up 3.2% to $11.9 billion in July. Six of seven sub-sectors increased, led by the personal and household goods (+5.8%) and the food, beverage and tobacco (+5.0%) sub-sectors. Sales in the personal and household goods sub-sector increased after two consecutive declines, reaching their highest level on record, while sales in the food, beverage and tobacco sub-sector increased for the second consecutive month.
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Wholesale sales in Ontario rose for the second month in a row, up 1.1% to $32.6 billion in July, on the strength of higher sales in four of seven sub-sectors. The motor vehicle and parts sub-sector (+3.1%), which rose after three consecutive monthly declines, and the personal and household goods sub-sector (+4.0%), which increased for the second consecutive month, contributed the most to higher sales in Ontario.
In Alberta, sales increased for the third time in five months, up 2.5% in July to $7.0 billion. The machinery, equipment and supplies sub-sector (+4.9%) contributed the most to the gain. The gain in this sub-sector was attributable to higher sales reported in the construction, forestry, mining and industrial machinery, equipment and supplies industry.
Sales in British Columbia rose 0.7% to $6.7 billion in July, on the strength of higher sales in the food, beverage and tobacco and the building material and supplies sub-sectors. Both sub-sectors increased following two consecutive monthly declines.
In dollar terms, the Atlantic provinces reported the largest decline in July. Sales in Newfoundland and Labrador decreased 4.6% to $354 million, on the strength of lower sales in the miscellaneous sub-sector.
The food, beverage and tobacco sub-sector contributed the most to the decline in Nova Scotia (-1.0%), New Brunswick (-0.8%) and Prince Edward Island (-0.8%).
Inventories rise in July
Wholesale inventories increased for the fifth time in seven months, up 1.4% to $87.1 billion in July. Gains were recorded in six of seven sub-sectors, representing 86% of total wholesale inventories.
In dollar terms, the personal and household goods sub-sector (+4.3%) recorded the largest gain, on the strength of higher inventories in five of six industries. This was the third consecutive monthly increase for the sub-sector.
Inventories in the building material and supplies sub-sector (+2.2%) grew for the fifth consecutive month in July. The increase was mostly attributable to gains in the electrical, plumbing, heating and air-conditioning equipment and supplies industry (+4.1%).
The food, beverage and tobacco sub-sector (+1.8%) posted a second consecutive monthly increase, mainly due to higher inventories in the food industry (+2.0%).
The machinery, equipment and supplies sub-sector (+0.6%) rose for the fifth time in seven months, on the strength of the farm, lawn and garden machinery and equipment industry (+1.5%).
The lone sub-sector to decline in July was motor vehicle and parts, down 0.8% following three consecutive monthly gains.
The inventory-to-sales ratio was unchanged at 1.36 in July. The ratio is a measure of the time in months required to exhaust inventories if sales were to remain at their current levels.
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