Statistics Canada reported on Tuesday the wholesale sales rose 0.7 percent m-o-m to CAD67.42 million in November, following an unrevised 1.0 percent m-o-m climb in October.

Economists had forecast a 1.0 percent m-o-m gain for November.

According to the report, sales increased in five of seven subsectors, led by the machinery, equipment and supplies (+2.8 percent m-o-m) and the building material and supplies (+1.1 percent m-o-m) subsectors, primarily reflecting higher domestic sales of the Canadian goods, as both imports and exports of key commodities declined in November.

Meanwhile, sales of motor vehicles and motor vehicle parts and accessories went down 1.8 percent m-o-m, recording their first monthly decline after six months of gains. Excluding motor vehicle and motor vehicle parts and accessories subsector, wholesale sales rose 1.2 percent m-o-m.  

In y-o-y terms, wholesale sales surged 7.7 percent in November.

Wholesale inventories dropped 0.6 m-o-m in November, recording their second monthly decline in a row. Inventories fell in all seven subsectors in November, with the machinery, equipment and supplies subsector (-1.1 percent m-o-m) recording the largest decrease. The inventory-to-sales ratio also fell for the second straight month, reaching 1.33 in November, down from in October. This was the lowest level since May 2018. In y-o-y terms, wholesale inventories declined 2.2 percent in November.