Canadian wholesale sales fall sequentially in February on decline in four subsectors

Canadian wholesale sales fell in the month of February. Sales dropped 0.8 percent sequentially to CAD 62.8 billion, the largest downward movement and the second monthly fall since September 2017, showed Statistics Canada. Lower sales were seen in four of seven subsectors, representing 64 percent of total wholesale sales. The miscellaneous and the motor vehicle and parts subsectors contributed the most to the fall. In terms of volume, wholesale sales fell 0.9 percent sequentially.

The miscellaneous subsector recorded the biggest fall in dollar terms in February, falling 3.7percent to CAD 7.7 billion. This was the second fall in three months, bringing the subsector to its lowest level since December 2016. Sales in motor vehicle and parts subsector dropped 2.1 percent, a fourth fall in five months. Meanwhile, wholesalers in the building material and supplies subsector recorded a fall of 0.4 percent in the month.

On the other hand, sales in the personal and household goods subsector rose 0.8 percent. The home furnishings and personal goods industries contributed the most to the rise.

Region wise, sales dropped in seven provinces, led by Ontario. Sales in Ontario dropped for the second time in three months, falling 1.1 percent. In Manitoba, wholesale sales fell 3.7 percent, whereas sales dropped 2.6 percent in Saskatchewan. On the other hand, Nova Scotia saw a rise of 4 percent.

Wholesale inventories remained the same at CAD 83.6 billion in February. Lower inventories in three subsectors, representing 60 percent of wholesale inventories, were countered by higher inventory levels in the other subsectors. The inventory-to-sales ratio rose to 1.33 in February from January’s 1.32, owing to a fall in sales.

At 19:00 GMT the FxWirePro's Hourly Strength Index of Canadian Dollar was neutral at -24.5141, while the FxWirePro's Hourly Strength Index of US Dollar was highly bullish at 104.447. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex

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