Canadian Wholesale Sales Rebound in November

Canadian wholesale trade rebounded in November, driven by increased sales of motor vehicles and building materials. According to Statistics Canada, wholesale sales rose 0.9% on a seasonally adjusted basis to 82.49 billion Canadian dollars ($61.51 billion). This figure exceeded the agency's advance estimate of a 0.8% rise in sales.

Positive Outlook for Wholesale Sector

Wholesale transactions had experienced a slight decline of 0.3% in October and a 0.7% fall in September. However, wholesale sales in November saw a 0.6% increase in volume after two consecutive months of decline. On an annual basis, nominal wholesale sales experienced a slight dip of 0.2%.

Key Factors Behind the Recovery

In November, four out of seven wholesale sectors tracked by Statistics Canada reported increased sales. Vehicle and parts sales grew by 3.3% after a decline in October, while sales of building materials and supplies rose for a second consecutive month with a 1.2% increase. Personal and household goods sales also saw a rise of 1.5%, primarily driven by gains in toiletries, cosmetics, sundries, and home furnishings.

Impact on Wholesale Inventories

The value of wholesale inventories decreased by 1.5% in November to reach C$127.93 billion. This decline was primarily led by the machinery, equipment, and supplies segment, as well as the building material and supplies sector.

Overall Performance of Wholesale Sales

When including sales by petroleum, oilseed, and grain merchants, Canadian wholesale sales for November were 2.9% lower at C$123.29 billion. Inventories on the same basis also saw a decrease of 1.6% to C$142.18 billion.

Positive Trend in Manufacturing Sales

In addition to the recovery in wholesale trade, manufacturing sales also improved in November, rising by 1.2% compared to the previous month. This growth was driven by increases in chemicals, primary metals, and machinery.

Statistics Canada is scheduled to release retail sales data for November on Friday.