Statistics Canada reported on Monday the wholesale sales rose 0.7 percent m-o-m to CAD65.65 million in February, following an unrevised 1.8 percent m-o-m gain in January.

Economists had forecast a 0.5 m-o-m decrease for February.

According to the report, higher sales were recorded in three of seven subsectors, accounting for 51 percent of total wholesale sales. The motor vehicle and motor vehicle parts and accessories subsector led the increase with a 4.2 percent m-o-m climb, driven by the motor vehicle industry (+6.5 percent m-o-m) due to gains in manufactured motor vehicles and exports of passenger cars and light trucks, following extended temporary shutdowns of certain automotive assembly plants in January.

In y-o-y terms, wholesale sales jumped 3.8 percent in February.

Meanwhile, wholesale inventories declined 0.3 percent m-o-m in February. Inventories were down in four of seven subsectors. The inventory-to-sales ratio edged down to 1.40 in February from 1.44 in January.