Wholesale sales declined 0.6 percent to $54.7 billion in October, a fourth consecutive decrease, according to Statistics Canada. Declines were recorded in four subsectors, led by lower sales in the food, beverage and tobacco and the motor vehicle and parts subsectors. In volume terms, wholesale sales decreased 0.6 percent in October.
In the food, beverage and tobacco subsector, sales declined 3 percent to $10.5 billion, their third decrease in four months. The food industry (-3.4 percent) led the decline, bringing the industry and its subsector to their lowest levels in six months.
Sales in the motor vehicle and parts subsector declined for a fourth consecutive month, down 2.1 percent to $9.5 billion. All of the industries in the subsector contributed to the decrease, led by the motor vehicle industry (-2.5 percent). In October, there were also lower imports of passenger cars and light trucks.
Following three consecutive gains, the miscellaneous subsector decreased 1.2 percent to $7.3 billion. The agricultural supplies industry, down 6.1 percent in October following two consecutive gains, contributed the most to the decline. The recyclable material industry also contributed to the decrease with its fourth consecutive decline, down 4.1 percent to its lowest level since June 2013.
Sales decreased for a second consecutive month in the building material and supplies subsector, down 0.3 percent to $7.5 billion. The metal service centers industry (-1.5 percent) led the decline with its third consecutive decrease, which brought the industry to its lowest level in four years.
In the machinery, equipment and supplies subsector, sales rose 1.4 percent to $11.3 billion, their highest level since October 2014. The other machinery, equipment and supplies industry led the gain, rising 5.4 percent to its highest level on record.
The construction, forestry, mining, and industrial machinery, equipment and supplies industry (+2.9 percent) also recorded a gain, mostly offsetting its decline in September. Despite the gain in October, year-to-date sales for this industry were 3.3 percent lower compared with the same period in 2014.
Following three consecutive declines, sales in the personal and household goods subsector rose 1.7 percent to $7.9 billion. The pharmaceuticals and pharmacy supplies industry (+4.4 percent) contributed the most to the gain in October, more than offsetting its decline in September.
In October, lower sales were recorded in seven provinces, which together accounted for 94 percent of wholesale sales. Ontario and Alberta were the largest contributors to the decline.
Ontario posted the largest decline in dollar terms in October, down 0.6 percent to $27.5 billion, its third consecutive decrease. The food, beverage and tobacco subsector and the motor vehicle and parts subsector contributed the most to the decline.
In Alberta, sales declined for the ninth time in 2015, down 2.2 percent to $6.3 billion. The machinery, equipment and supplies subsector was the largest contributor to the decline.
Sales in British Columbia decreased 1.2 percent to $5.2 billion, a second consecutive decline, led by lower sales in the building material and supplies subsector.
In Prince Edward Island, sales declined 6.3 percent to $59 million, their second decrease in three months, bringing sales in the province to their lowest level in six months.
Saskatchewan recorded its second increase in three months, up 3.6 percent to $2.4 billion. The machinery, equipment and supplies subsector led the widespread gains.
Sales in Newfoundland and Labrador rose 3.1 percent to $463 million on the strength of gains in most subsectors.
Wholesale inventories rose 0.5 percent to $73.2 billion in October. Gains were recorded in three of seven subsectors, representing 62 percent of total wholesale inventories.
Inventories in the motor vehicle and parts subsector (+3.3 percent) increased for a fifth consecutive month, reaching their highest level on record.
Both the personal and household goods subsector (+2.3 percent) and the machinery, equipment and supplies subsector (+0.7 percent) recorded higher inventories in October following declines in September.
In the miscellaneous subsector, inventories declined 2.3 percent to their lowest level in five months, while a seventh consecutive decrease in the building material and supplies subsector (-1.4 percent) brought it to its lowest level in 15 months.
The inventory-to-sales ratio rose from 1.32 in September to 1.34 in October, the highest ratio since June 2009. The inventory-to-sales ratio is a measure of the time in months required to exhaust inventories if sales were to remain at their current level.
