Statistics Canada reported on Friday the wholesale sales fell 1.3 percent m-o-m to CAD66.50 billion in December, following an unrevised 0.7 percent m-o-m advance in November. This marked the first decline in wholesale sales since April.

Economists had forecast a 1.5 percent m-o-m drop for December.

According to the report, sales went down in the three largest wholesale subsectors in December, with the greatest decline seen in the motor vehicle and motor vehicle parts and accessories subsector (-4.3 percent m-o-m), followed by the machinery, equipment and supplies subsector (-3.1 percent m-o-m), and the food, beverage and tobacco subsector (-1.3 percent m-o-m). These declines, however, were partially offset by an increase in sales in the miscellaneous subsector (+2.9 percent m-o-m).

Excluding motor vehicle and motor vehicle parts and accessories subsector, wholesale sales fell 0.7 percent m-o-m.

In y-o-y terms, wholesale sales rose 4.8 percent in December.

In 2020, Canada’s wholesale sales decreased 1.0 percent, registering its first drop since 2009.

Meanwhile, wholesale inventories edged down 0.1 m-o-m in December to CAD89.96 billion, recording their third monthly decline in a row. The inventory-to-sales ratio 2020 rose to 1.35 in December from 1.34 in November, recording its first increase since September. In y-o-y terms, wholesale inventories declined 1.7 percent in December. In 2020, the average inventory-to-sales ratio was 1.46 compared with 1.44 in 2019.