Statistics Canada reported on Friday the wholesale sales rose 4.3 percent m-o-m to CAD64.97 million in July, following an unrevised 18.5 percent m-o-m climb in June.

Economists had forecast a 3.5 percent m-o-m increase for July.

According to the report, sales increased in six of seven subsectors. The motor vehicle and motor vehicle parts and accessories (+19.3 percent m-o-m) subsector contributed the most to the growth in July. Excluding this subsector, wholesale sales rose 1.8 percent m-o-m.

In y-o-y terms, wholesale sales increased 0.7 percent in July.

Meanwhile, wholesale inventories dropped 0.4 percent m-o-m in July. Inventories decreased in five of seven subsectors, with the machinery, equipment and supplies (-2.5 percent m-o-m) and the motor vehicle and motor vehicle parts and accessories (-3.0 percent m-o-m) subsectors recording the largest declines. The inventory-to-sales ratio declined from 1.45 in June to 1.39 in July, the lowest level since October 2018.