Wholesale sales in March surprise to the upside

Wholesale sales rose 1.1% to $62.8 billion in March, reports StatsCan. The increase more than offset a decline in February of -0.8%, and was “more than expected,” says CIBC senior economist Royce Mendes in emailed commentary.

The motor vehicle and parts subsector posted the largest gain in dollar terms, as sales rose 5.0% to $11.8 billion, following three consecutive monthly declines. Excluding the subsector, wholesale sales rose 0.2%.

Meanwhile, the building material and supplies subsector increased 3.4% to a record high of $9.2 billion.

Overall, sales increased in four of seven subsectors, while wholesale sales in volume terms rose 0.8%. The increase in volumes will “provide a nice end to the first quarter,” says Mendes.

Sales in the food, beverage and tobacco subsector declined for the second month, falling 1.4% to $11.9 billion.

The wholesale report doesn’t garner much market reaction, says Mendes. “Markets will now have to wait until next week’s GDP report and Bank of Canada decision for any domestic economic news.”

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Staff

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