Canada's economy could get a boost from better-than-expected activity at the wholesale level in November, analysts said yesterday.
The 1.2% rise in wholesale sales -- a measure that often suggests stronger future activity at the retail level -- may offset weakness in manufacturing sales reported the day before, observers said.
Scotia Capital economist Derek Holt described Statistics Canada's wholesale data report, released yesterday, as "an overall positive report."
The gains in wholesale sales, which reached $45.7 billion in November, were driven largely by a 4.5% advance in machinery, equipment and supplies, although sales advanced in all but one of the seven sub-sectors, with the exception of motor vehicle and parts.
It was the fourth consecutive month wholesale sales advanced. Analysts had expected a gain of between 0.2% and 0.4%.
Yesterday's data was preceded by an 0.8% slide in manufacturing sales reported Wednesday and will be followed today by retail sales, another key factor influencing gross domestic product, or overall growth. Analysts are calling for a 0.5% advance in November following October's 0.8% gain.
Another sign of potentially stronger near-term economic activity could be found in Statistics Canada's index of leading indicators, which rose 0.5% in December, slightly above analysts' expectations for a gain of 0.3%.
Of 10 components, five advanced, led by stock market prices and household spending.
Also yesterday, Statistics Canada reported that the number of people receiving employment insurance benefits dipped 0.8% to about 673,650 in November, a number that has been relatively stable since March 2010, the federal agency said.
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