Western provinces lead gain in May wholesale sales

By Staff, with files from The Canadian Press | July 23, 2018 | Last updated on July 23, 2018
2 min read

Statistics Canada says wholesale sales rose 1.2% to $63.7 billion in May.

The gains were helped by higher sales of lumber, millwork, hardware and other building supplies. The farm product subsector also rebounded after a decline in April.

But the motor vehicle and supplies subsector fell for the second month in a row, and for the fifth time in six months.

Statistics Canada says wholesale sales were up in eight provinces in May, accounting for 49% of total wholesale sales.

“Higher sales in the western provinces led the gains,” the agency says in a release, adding that, “In dollar terms, Alberta contributed the most to the increase, more than offsetting the decline reported in Ontario.”

In both Saskatchewan and B.C., sales rose for the third consecutive month (up 9.8%, to $2.3 billion, and 1.9%, to $6.7 billion, respectively).

Ontario posted its “second consecutive monthly decline in May, down 0.9% to $32.1 billion,” the Statistics Canada release says. A chart that breaks down wholesale sales for the month, by province and territory, shows New Brunswick, Yukon and Nunavut also saw declines (of -1.4%, -8.3% and -36.2%, respectively, compared to April).

Royce Mendes, director and senior economist at CIBC, said in a Monday research note that the data is “another positive surprise.”

The trifecta of retail, manufacturing and wholesale trade all showing strength will push May GDP even higher than the already healthy estimates heading into today’s number,” he predicts.

Gross domestic product figures for May will be released July 31.

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Staff, with files from The Canadian Press

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