Canada’s wholesale sales rise more than forecast in June

Canada’s wholesale sales rise more than forecast in June

Statistics Canada reported on Monday the wholesale sales rose 0.6 percent m-o-m to CAD64.15 million in June, following a revised 1.9 percent m-o-m decrease in May (originally a 1.8 percent m-o-m drop).

Economists had forecast an advance of 0.3 percent m-o-m for June.

According to the report, higher sales were recorded in four of seven subsectors, accounting for 54 percent of total wholesale sales. The miscellaneous (+3.5 percent m-o-m), and the machinery, equipment and supplies (+1.5 percent m-o-m) subsectors contributed the most to the June advance, while the motor vehicle and motor vehicle parts and accessories subsector (-1.9 percent m-o-m) recorded the largest drop. Excluding motor vehicle and parts, wholesale sales grew 1.1 percent m-o-m in June.

During the second quarter of 2019, sales rose 1.3 percent, recording the 13th consecutive quarterly gain.

At the same time, wholesale inventories increased 1.5 percent m-o-m in June. Inventories were up in six of seven subsectors, representing about 83 percent of total wholesale inventories. Inventories surged 3.2 percent in the second quarter, recording the 12th consecutive quarterly increase.