Canadian wholesale sales remained flat at C$57 billion (US$43.2 billion) in January, according to Statistics Canada. Gains in the machinery, equipment and supplies subsector were offset by lower sales in the motor vehicle and parts subsector. In volume terms, wholesale sales decreased 0.2 percent in January.
Higher sales were recorded in four subsectors in January. In dollar terms, the machinery, equipment and supplies subsector led the gains.
The machinery, equipment and supplies subsector increased 2.6 percent to C$11.5 billion (US$8.7 billion). The construction, forestry, mining, and industrial machinery, equipment and supplies industry led the gain, increasing 6.4 percent to its highest level since May 2015. A rise of 2.4 percent in the other machinery, equipment and supplies industry also contributed to the increase.
The personal and household goods subsector was up 0.5 percent to C$7.9 billion (US$6 billion), while the food, beverage and tobacco subsector increased 0.2 percent to C$11 billion (US$8.3 billion). This was the highest level on record for both subsectors.
Sales in the motor vehicle and parts subsector decreased 2.8 percent to C$11 billion (US$8.3 billion), the first decline in three months.
The motor vehicle industry accounted for the drop, declining 4.9 percent to C$8.3 billion (US$6.3 billion). Despite the decrease, sales in the industry were 27.4 percent higher than in January 2015.
In January, lower sales were recorded in six provinces, together accounting for 69 percent of wholesale sales. These declines were mostly offset by gains in British Columbia, Quebec and Manitoba.
Ontario recorded the largest decline in dollar terms in January, down 0.5 percent to C$29.1 billion (US$22.1 billion), following two consecutive gains. Lower sales in the motor vehicle and parts subsector and the building material and supplies subsector contributed to the decrease.
In Newfoundland and Labrador, sales fell 21.2 percent to C$339 million (US$256.9 million), a second consecutive decrease. The decline in January brought the province to its lowest level since November 2013. The miscellaneous subsector led widespread declines across subsectors.
Sales in both Alberta C$6.3 billion (US$4.8 billion) and Saskatchewan C$2.4 billion (US$1.8 billion) fell 1 percent in January. The decline in Alberta offset most of the gains recorded in the two previous months, while the decrease in Saskatchewan followed three consecutive gains. In both provinces, the miscellaneous subsector and the machinery, equipment and supplies subsector contributed to the decline.
In Nova Scotia, sales declined 5 percent to C$821 million (US$622.2 million), mostly offsetting the 6.1 percent gain recorded in December. The food, beverage and tobacco subsector, which had contributed the most to the gain in December, led widespread declines across subsectors in January.
Both British Columbia and Quebec recorded a third consecutive gain in January that brought sales to their respective highest levels on record. In British Columbia, sales rose 2.8 percent to C$5.5 billion (US$4.2 billion) on the strength of gains in most subsectors, while in Quebec, sales rose 1.4 percent to C$10.4 billion (US$7.9 billion), led by gains in the machinery, equipment and supplies subsector.
Following three consecutive declines, sales in Manitoba rose 4.6 percent to C$1.5 billion (US$1.1 billion). Gains were widespread across subsectors, led by the miscellaneous subsector.
Wholesale inventories rose 0.3 percent in January to C$72.9 billion (US$55.3 billion), the first advance in three months. Increases were recorded in three of seven subsectors, accounting for 51 percent of total wholesale inventories.
The largest gain in dollar terms was in the machinery, equipment and supplies subsector (+1.2 percent), mostly offsetting the decline in the previous month.
Increases in inventories were also recorded in the food, beverage and tobacco (+1.6 percent) and miscellaneous (+1.3 percent) subsectors.
The motor vehicle and parts (-1.4 percent) and building material and supplies (-0.9 percent) subsectors recorded their second decline in three months.
The inventory-to-sales ratio increased from 1.27 in December to 1.28 in January. This ratio is a measure of the time in months required to exhaust inventories if sales were to remain at their current level.
