Wholesale sales in Canada rose in September at a slower pace compared to the previous month, as a decline in food sales was offset by gains in agricultural supplies and auto parts, according to figures released Wednesday by Statistics Canada.
Month-over-month wholesale trade climbed 0.2% to $49.81 billion, or just below market expectations for a 0.3% increase, according to economists at Royal Bank of Canada. The agency also revised downward the August wholesale data, and now indicate sales rose 0.4% in the month versus the previous 0.5% estimate.
In volume terms, sales in September also rose 0.2%.
On a year-over-year basis, wholesale sales gained 2.6%. The level of wholesale sales in September remains below the peak hit in May, of $50.28 billion.
Wholesalers - which account for the largest portion of the service sector - generally act as an intermediary in the distribution of merchandise. As a result, many wholesalers tend to sell merchandise in large quantities to retailers, businesses and institutional clients.
Sales rose in four of the seven subsectors tracked by Statistics Canada, led by the miscellaneous category, which rose 1.3% to $6.16 billion, on the strength of sales in agricultural supplies.
Motor vehicle and parts recorded a 0.6% advance to $8.64 billion, due to sales in auto parts.
Weighing on September's wholesale results were declines in food, 0.6% to $8.71 billion, and drugs and drug-store supplies, 1.3% to $3.57 billion.
Meanwhile, inventories fell 0.2% to $61.77 billion, on declines in the auto sector and building materials. The inventory-to-sales ratio -- which measures the time in months required to exhaust stockpiles if sales remain at present levels -- was unchanged at 1.24.
