Canada’s wholesale sales increase much more than forecast in June

Statistics Canada reported on Wednesday the wholesale sales surged 18.5 percent m-o-m to CAD62.06 million in June, following a revised 5.8 percent m-o-m gain in May (originally a 5.7 percent m-o-m advance). That was the biggest increase in wholesale sales on record.

Economists had forecast a 10 percent m-o-m increase for June.

According to the report, all seven subsectors recorded higher sales for the first time since November 2017. The motor vehicle and motor vehicle parts and accessories (+114.8 percent m-o-m) subsector led the growth. Excluding this subsector, wholesale sales rose 10.2 percent m-o-m.

In y-o-y terms, wholesale sales decreased 2.4 percent in June.

Meanwhile, wholesale inventories dropped 0.7 percent m-o-m in June. Inventories decreased in four of seven subsectors, accounting for 43 percent of total wholesale inventories. The inventory-to-sales ratio declined from 1.74 in May to 1.46 in June.