Statistics Canada reported on Monday the wholesale sales fell 1.8 percent m-o-m to CAD63.82 million in May, following a revised 1.6 percent m-o-m increase in April (originally a 1.7 percent m-o-m surge). That was the largest decline in wholesale trade since March 2016. 

Economists had forecast an advance of 0.5 percent m-o-m for May.

According to the report, lower sales were recorded in five of six subsectors, accounting for 86 percent of total wholesale sales. The motor vehicle and motor vehicle parts and accessories subsector (-4.3 percent m-o-m) was the leading contributor to May’s decline, followed by the miscellaneous subsector (-4.3 percent m-o-m). Excluding motor vehicle and parts, wholesale sales dropped 1.3 percent m-o-m in May.

At the same time, wholesale inventories increased 1.1 percent m-o-m in May. Inventories were up in six of seven subsectors, representing about 83 percent of total wholesale inventories.