Statistics Canada reported on Thursday the wholesale sales fell 1.1 percent m-o-m to CAD64.17 million in October, following a revised 0.8 percent m-o-m increase in September (originally a 1.0 percent m-o-m gain).

Economists had forecast a drop of 0.1 percent m-o-m for October.

According to the report, lower sales were recorded in four of seven subsectors, accounting for 66 percent of total wholesale sales. The machinery, equipment and supplies (-3.0 percent m-o-m) and the miscellaneous (-3.4 percent m-o-m) subsectors contributed the most to the drop in October, while sales increased in the farm product (+3.1 percent m-o-m) and in the personal and household goods (+0.2 percent m-o-m) subsectors.

At the same time, wholesale inventories decreased 0.5 percent m-o-m in October. Inventories were down in four of seven subsectors, representing 76 percent of total wholesale inventories.