Posts Tagged ‘wholesale’
Wholesale trade fell an unexpected 1.2% in February following three months of surging sales, according to government data released Wednesday.
Sales drops in the motor vehicle and parts, and machinery, equipment and supplies subsectors accounted for most of the monthâ€™s shortcomings, Statistics Canada said.
The largest decrease came in the auto sector, which slowed 4.4%, marking the first negative month for the industry since August 2009.
â€œTo be certain, any disappointment in February is tempered by the sheer strength of the number set in the past months,â€ HSBC Securities Canada economist Stewart Hall said in a morning note. HSBC had projected a wholesale trade gain of 0.6% for the month.
The best performing subsector, in dollar terms, was the building material and supplies industry, which saw sales rise 1.5% in February.
In terms of volume, wholesale trade dropped 1.8%. Inventories edged up for the first time since November 2008 and by 0.1%.
But Hall says the monthâ€™s soft results wonâ€™t change the Bank of Canadaâ€™s monetary policy going forward. The central bank is widely expected to introduce a 25 basis point rate hike in June.
â€œMost, including ourselves will be inclined to chalk today’s softness in the wholesale number set to some overdue moderation in what has been a frenetic pace of activity for many months now,â€ Hall said.
After posting increases in January, Ontario and Quebec fell short in February. Ontario, which accounts for roughly half of all of Canadaâ€™s wholesale trade, saw sales drop 1.7%. In British Columbia, sales fell 4.3%. Sales in Saskatchewan rose, however, thanks in part to demand for agricultural supplies.
Canadian wholesale sales declined 1.2 percent in February after three months of advances, Statistics Canada reported Wednesday from Ottawa.
Declines were seen in four of the seven wholesale sectors, accounting for two-thirds of total sales, the agency said.
The major contributors to the sales decline were in motor vehicles and parts, down 4.4 percent, and the machinery, equipment and supplies sector, which was down by 2.8 percent, StatsCan said.
The building material and supplies sector was the largest gainer, up 1.5 percent with increases in all three of its component industries, continuing an upward trend that began in mid-2009, the agency said.
Regionally, the provinces of Ontario, Quebec and British Columbia accounted for the bulk of the wholesale sales declines. Ontario accounts for about half of Canada’s total wholesale sales and saw a decrease of 1.7 percent in February.