Canadian wholesale services price index rose 1.9 percent in the second quarter, with four of the eight subsectors posting margin gains.
The gain in the WSPI in the second quarter was led by petroleum and petroleum product merchant wholesalers (+17.5 percent), following a 31.3 percent increase in the previous quarter. Of the eight subsectors, the petroleum and petroleum product merchant wholesalers subsector recorded the largest quarterly gain.
Also contributing to the increase in the WSPI in the second quarter were miscellaneous merchant wholesalers (+4.4 percent), as margin gains were recorded for chemical (except agricultural) and allied products (+8.9 percent) and agricultural chemical and other farm supplies (+14.3 percent) merchant wholesalers. Margins for food, beverage and tobacco merchant wholesalers (+2.3 percent) were also up, as a result of higher margins for other specialty-line food merchant wholesalers (+4.5 percent).
To a lesser extent, farm product merchant wholesalers (+4.2 percent) also posted gains.
The quarterly gain in the WSPI was primarily moderated by the motor vehicle and motor vehicle parts and accessories merchant wholesalers subsector (-3 percent), as a result of lower margins for truck, truck tractor and bus merchant wholesalers (-9 percent). Lower margins were also recorded for building material and supplies (-0.3 percent) and machinery, equipment and supplies (-0.3 percent) merchant wholesalers.
Margins for the personal and household goods subsector were unchanged.
The WSPI advanced 4.8 percent in the second quarter compared with the same quarter of 2016. This was the 15th consecutive year-over-year increase.
Petroleum and petroleum products merchant wholesalers posted the largest year-over-year margin gain (+41 percent) since the inception of the WSPI, as a result of low margins recorded the same quarter of the previous year. The second largest year-over-year margin gain (+24 percent) was registered in the second quarter of 2014, coinciding with high natural gas prices in the winter of 2014.
Margins were also up for farm products (+8.1 percent), miscellaneous (+7.7 percent) and food, beverage and tobacco (+6.4 percent) merchant wholesalers.
Personal and household goods (+2 percent) and machinery, equipment and supplies (+0.8 percent) merchant wholesalers also posted gains.
Motor vehicle and motor vehicle parts and accessories (-3.7 percent) and building material and supplies (-0.2 percent) recorded year-over-year margin declines.
