Canada’s wholesale sales unexpectedly fall in November

Statistics Canada reported on Wednesday the wholesale sales fell 1.2 percent m-o-m to CAD63.23 million in November, following a revised 1.2 percent m-o-m decrease in October (originally a 1.1 percent m-o-m decline).

Economists had forecast a flat m-o-m performance for November.

According to the report, lower sales were recorded in five of seven subsectors, accounting for 77 percent of total wholesale sales. The November drop was led by declines in the motor vehicle and motor vehicle parts and accessories subsector (-3.3 percent m-o-m) and the miscellaneous subsector (-4.1 percent m-o-m), which were followed by the personal and household goods (-1.0 percent m-o-m) and the building material and supplies (-1.0 percent m-o-m) subsectors. At the same time, sales increased in the machinery, equipment and supplies subsector (+0.8 percent m-o-m) as well as the farm product subsector (+1.2 percent m-o-m).

Wholesale inventories increased 0.4 percent m-o-m in November after three consecutive monthly declines. Inventories were down in four of seven subsectors, representing 71 percent of total wholesale inventories.