Statistics Canada reported on Monday the wholesale sales fell 0.8 percent m-o-m to CAD71.53 billion in June, following an unrevised 0.5 percent m-o-m advance in May. This marked the first decline in wholesale sales since February.

Economists had forecast a 1.8 percent m-o-m drop for June.

According to the report, sales went down in three of the seven subsectors, led by building material and supplies (-5.4 percent m-o-m), and machinery, equipment and supplies (-3.5 percent m-o-m) subsectors. These declines, however, were partially offset by gains in the personal and household goods (+4.3 percent m-o-m), and motor vehicles and motor vehicle parts and accessories (+3.1 percent m-o-m) subsectors.

Excluding motor vehicle and motor vehicle parts and accessories subsector, wholesale sales declined 1.4 percent m-o-m.

In y-o-y terms, wholesale sales surged 14.7 percent in June.

Meanwhile, wholesale inventories dropped 0.6 m-o-m in June to CAD94.62 billion. Notwithstanding this decline, June's inventories were the second-highest on record. Inventories decreased in four of the seven subsectors, with the motor vehicle and motor vehicle parts and accessories subsector (-4.7 percent m-o-m) registering the largest decrease that generated more than 90% of the overall fall.

In y-o-y terms, wholesale inventories increased 4.6 percent in June.

The inventory-to-sales ratio remained constant at 1.32 in June.