Wholesale sales edge down in August

By Staff | October 22, 2018 | Last updated on October 22, 2018
1 min read
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Canadian wholesale sales dropped slightly in August—a marginal pullback that shouldn’t affect GDP forecasts, an economist said.

Wholesale sales were down 0.1% to $63.6 billion for the month, StatsCan reported. Sales dropped in four of seven subsections, representing 65% of total wholesale sales.

In volume terms, wholesale sales were down 0.1%.

August’s biggest declines came from the building material and supplies (–2.3%) and motor vehicle and parts (–1.4%) subsectors. For the latter—and for the motor vehicle industry as a whole—the decline was the largest since November 2016, StatsCan said.

In contrast, the biggest gain came from the machinery, equipment and supplies subsector, up 2.2% to $13.3 billion. StatsCan said the monthly gain was the highest on record, led by higher sales in the computer and communications equipment and supplies industry.

The personal and household goods subsector declined 0.5% following two consecutive monthly gains.

In emailed commentary, CIBC economist Katherine Judge says Monday’s economic data matched the bank’s forecast, and is in line with its forecasted GDP for August. Market reaction should be limited, she added.

Advisor.ca staff

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.