Wholesale sales rose 0.5% to $62.8 billion in August, led by the personal and household goods and motor vehicle and parts sub-sectors.
Sales were up in four of the seven sub-sectors, together representing 47% of total wholesale sales.
In volume terms, wholesale sales rose 0.4%.
Gains mainly attributable to the personal and household goods and the motor vehicle and parts subsectors
Sales in the personal and household goods sub-sector rose for the ninth consecutive month — posting the largest gain in dollar terms in August, rising 3.3% to a record $9.0 billion. Sales were up in four of the six industries, with the textile, clothing and footwear industry contributing the most to the gain.
Sales in the motor vehicle and parts sub-sector increased for the third time in four months, up 2.0% to $11.8 billion. The growth in the sub-sector was attributable to higher sales in the motor vehicle industry, which recorded its second consecutive monthly gain. There were higher imports of passenger cars and light trucks in August, and motor vehicle manufacturing sales increased.
Following two months of declines, the miscellaneous sub-sector rebounded in August, up 1.6% to $8.1 billion. Sales were up in four of the five industries, led by the recyclable material industry.
The building materials and supplies sub-sector posted the largest decline in August, down 3.5% to $8.7 billion and its first decrease in six months. Two of the three industries declined in August, with the lumber, millwork, hardware and other building supplies industry contributing the most to the downward movement.
Sales increase in five provinces, led by Ontario, Quebec and British Columbia
In Ontario, wholesale sales rose 0.8% to $32.1 billion, on the strength of higher sales in the personal and household goods (+6.4%) and the motor vehicle and parts (+0.6%) sub-sectors. The gain was slightly offset by lower sales in the machinery, equipment and supplies sub-sector (-1.6%).
Wholesale sales in Quebec increased for the fifth time in six months, up 1.0% to $11.3 billion in August. Four of the seven sub-sectors reported higher sales, led by the motor vehicle and parts (+5.8%) and the food, beverage, and tobacco (+2.5%) sub-sectors.
In British Columbia, sales were up 0.7% to $6.7 billion. Sales increased in five of the seven sub-sectors, with the machinery, equipment supplies (+7.6%) and the miscellaneous (+10.8%) sub-sectors leading the gain.
Wholesale sales in Alberta (-2.0%) fell in five of the seven sub-sectors. The food, beverage and tobacco (-5.1%) and the machinery, equipment and supplies (-3.9%) sub-sectors contributed the most to the decline.
Inventories up for the fifth consecutive month
Wholesale inventories climbed for the fifth consecutive month, up 0.2% to a record $80.8 billion in August. Increases were recorded in three of the seven sub-sectors, representing 45% of total wholesale inventories.
Inventories in the building material and supplies subsector rose 1.7% in August, accounting for the largest gain in dollar terms of all sub-sectors. The building material and supplies sub-sector has posted the highest level of growth of all sub-sectors in 2017, increasing 8.9% from January.
Inventories rose 1.1% in the personal and household goods sub-sector, a fourth increase in five months. Inventories have grown by 7.6% over this five-month period, led by the textile, clothing and footwear industry.
The food, beverage and tobacco sub-sector (+1.5%) posted a sixth consecutive monthly increase, on the strength of higher inventories in the food industry (+1.5%).
The miscellaneous sub-sector (-2.5%) reported the largest dollar value decline in August, with the agricultural supplies industry (-4.5%) leading the decrease. Despite the decline in August, inventories in the miscellaneous sub-sector were 18.8% higher than in August 2016.
The inventory-to-sales ratio remained constant at 1.29 from July to August, an indication that both inventories and sales have been increasing at the same pace. This ratio is a measure of the time in months required to exhaust inventories if sales were to remain at their current level.
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