Canadian wholesale sales rose less than expected in October, as a gain in automotive sales was tempered by a drop in sales of food and beverages.
Sales advanced 0.3% to $41.1 billion, Statistics Canada said today in Ottawa. Economists expected a 0.5% gain, based on the median of 15 responses in a Bloomberg survey. The agency revised its September estimate to a 0.1% gain, from the originally reported 0.2%.
Sales were 8.6% below their level of a year ago and are 11% below the pre-recession peak of $46.2 billion, as weak U.S. demand and a high dollar triggered automobile plant and lumber mill shutdowns. Bank of Canada Governor Mark Carney predicts the economy won’t return to operating at its full potential until mid-2011, and said in a speech two days ago lots of "slack" remains in the economy.
Five of the seven wholesale categories tracked by Statistics Canada recorded increases in October. Automotive product sales rose 1.5% to $6.59 billion in October after declining in the two previous months. Machinery and electronic equipment increased 1.1% while building materials gained 1%.
Wholesale sales of food, beverages and tobacco products declined 1.8%, the agency said in its report.
In volume terms, which excludes the effect of prices, wholesales rose 0.4% on the month, Statistics Canada said.
Wholesale inventories fell 1.5% to $54 billion in October, dropping the ratio of wholesale inventories to sales to 1.31 from 1.34 in September, its lowest level in a year.
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