Canada wholesale sales increase more than expected

Fundamental Analysis

CAD

“Ontario recorded the largest increase of wholesale sales in dollar terms among the provinces and territories, and the largest portion of the increase came from the motor vehicle and parts subsector.”

- Statistics Canada

The value of Canadian wholesale trade advanced more than expected in December, official figures revealed on Monday. According to Statistics Canada, the country's wholesale trade rose 0.7% in the reported month, continuing its uptrend for the third consecutive month, whereas market analysts anticipated an increase of 0.4%. In the meantime, the November gain of 0.2% was revised down to 0.1%. In volume terms, sales gained 0.9% in December, which is expected to prop up economic growth for the month. In the report, Statistics Canada said sales had appreciated in six out of seven sectors. Comparing with 2015 levels, there was a 3.1% gain in sales in 2016, the seventh consecutive yearly surge. The largest annual gain of 4.6% came in the machinery sector, suggesting a solid investment trend. The report also showed both household goods and food sectors rose 0.9% on a monthly basis, while building suppliers posted a 1.4% increase for the month. Nevertheless, there was a 2.1% decline registered in the motor vehicle sector, which is set to threaten growth in manufacturing sector’s output. In addition, wholesale inventories rose 1.1% for the fifth straight month in December.

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