Canadian wholesale sales edged down 0.2 percent to $58.9 billion (US$43.1 billion) in February, following four consecutive monthly increases. Declines were recorded in four subsectors, led by lower sales in the personal and household goods and the food, beverage and tobacco subsectors.

In volume terms, wholesale sales decreased 0.4 percent.

Sales decreased in four of seven subsectors in February, accounting for 54 percent of total wholesale sales.

The personal and household goods subsector recorded the largest decline in dollar terms in February, down 1.7 percent to $8.3 billion (US$6.1 billion), as sales decreased in five of six industries in that subsector. Following an increase of 30.2 percent in January in the home entertainment equipment and household appliance industry, the industry decreased 14.6 percent to $846 million (US$619.4 million). Despite the decline this month, wholesale sales in the industry were 8.7 percent higher than for the same period in 2016.

Following a flat January, the food, beverage and tobacco subsector reported a 1 percent decline in February to $11 billion (US$8 billion), led by the food industry (-0.9 percent).

Sales in the farm product subsector decreased 3 percent to $658 million, while the motor vehicle and parts subsector edged down 0.1 percent to $11.9 billion (US$8.7 billion). The posted declines for both subsectors in February followed reported increases in January.

The machinery, equipment and supplies subsector rose 0.6 percent to $11.5 billion (US$8.4 billion), offsetting a 0.6 percent decline reported in January. The farm, lawn and garden machinery and equipment industry (+9.7 percent) contributed the most to the gain, attaining its highest level of sales since August 2016.

Sales in the building material and supplies subsector increased 0.6 percent to $8.1 billion (US$5.9 billion), its fifth consecutive monthly gain, while sales in the miscellaneous subsector rose 0.6 percent to $7.3 billion (US$5.3 billion) for its third increase in four months.

Wholesale sales were down in eight provinces in February, accounting for 85 percent of total wholesale sales. In dollar terms, Ontario and Quebec contributed the most to the decline.

In Ontario, sales fell 0.5 percent to $30.4 billion (US$22.2 billion) in February, following a 6.3 percent rise in January. Declines were recorded in four subsectors, led by the machinery, equipment and supplies and the food, beverage and tobacco subsectors.

Sales in Quebec decreased for a second consecutive month, down 1.2 percent to $10.5 billion (US$7.7 billion). While six subsectors reported declines, the largest contributor to Quebec's decrease was the personal and household goods subsector.

Nova Scotia recorded its first decline in three months, with sales dropping 6.4 percent to $785 million (US$574.7 million), mostly offsetting a 7.9 percent gain in January. Sales were down in most subsectors, led by the motor vehicle and parts subsector.

British Columbia recorded lower sales, edging down 0.3 percent to $5.8 billion (US$4.2 billion). The decline was led by the motor vehicle and parts subsector. This was the province's second consecutive decline.

In Manitoba, sales were down 0.6 percent to $1.5 billion (US$1.1 billion), with the machinery, equipment and supplies subsector leading the decline. In New Brunswick, sales decreased 0.8 percent to $550 million, led by weaker sales in the building material and supplies subsector. Both provinces had recorded gains in January.

Sales in Prince Edward Island fell 7.1 percent to $54 million (US$39.5 million), a second consecutive monthly decrease and the lowest level since March 2014. The food, beverage and tobacco subsector contributed the most to the decline.

Newfoundland and Labrador posted a third consecutive decrease, with sales down 0.8 percent to $368 million (US$269.4 million), primarily on lower sales in the motor vehicle and parts subsector.

In contrast, wholesale sales in Alberta rose for the fifth consecutive month, up 2.9 percent to $6.7 billion (US$4.9 billion), reaching their highest level since June 2015. The machinery, equipment and supplies subsector led the gain.

In Saskatchewan, sales increased 3.1 percent to $2.2 billion (US$1.6 billion) in February. As in Alberta, higher sales in the machinery, equipment and supplies subsector contributed the most to the rise in this province.

Wholesale inventories edged up 0.2 percent to $74.1 billion (US$54.2 billion) in February, the sixth gain in seven months.

In dollar terms, the miscellaneous subsector (+1.9 percent) recorded the largest gain, followed by the machinery, equipment and supplies subsector (+0.6 percent). This was the fourth increase in five months for the miscellaneous subsector and the sixth increase in seven months for the machinery, equipment and supplies subsector.

Inventories in the motor vehicle and parts subsector were up 0.6 percent in February, partially offsetting a decline in January.

In the personal and household goods subsector (-0.7 percent), inventories dropped for the first time in three months.

The food, beverage and tobacco subsector (-1.2 percent) declined for a second consecutive month, while the building material and supplies subsector (-0.2 percent) posted its fourth consecutive decrease.

The inventory-to-sales ratio rose from 1.25 in January to 1.26 in February. This ratio is a measure of the time in months required to exhaust inventories if sales were to remain at their current level.