MNI DATA ANALYSIS:Canada Wholesale Sales Slow;Ex Autos Pick Up>

By Yali N'Diaye

     OTTAWA (MNI) - Canada wholesale sales edged up 0.1% in April, while 

analysts in a MNI survey had expected a 0.4% monthly gain, bringing down 

the 12-month growth rate to 4.3% from 5.2%, the lowest since January 

2017, data from Statistics Canada showed Thursday. 

     In volume terms, more relevant to real GDP, sales were unchanged on 

the month after rising 1.1% in March. 

     However, the disappointment was tempered by an upward revision to 

March estimate, now showing a 1.4% gain versus an initial growth 

estimate of 1.1%. The volume increase was also revised up by 0.3 

percentage points in March. 

     Inventories also edged up 0.1 in April, leaving the 

inventory-to-sales ratio unchanged at 1.31. 

     Overall, however, the report was not as disappointing as the 

headline suggested, although gains were concentrated in three sectors. 

     --LARGE AUTOS IMPACT 

     Reversing the previous month scenario, when gains were concentrated 

in the auto sector, data showed that same sector was a major drag in 

April. 

     Autos and parts sales fell 4.0% on the month, the largest drop 

since November 2016. 

     Excluding autos and parts, sales growth actually accelerated to 

1.0% from 0.3%, showing some strength in core sales. 

     --MACHINERY, EQUIPMENT IMPROVES 

     On the other hand, machinery, equipment and supplies posted a 2.3% 

increase, the largest since December 2017, after edging up 0.1% in 

March, sending an encouraging signal for investment activity, a key 

pilar of the Bank of Canada's growth scenario. 

     Sales excluding machinery, equipment and supplies contracted 0.5% 

on the month after rising 1.7% in March. 

     Personal and household goods was the other positive category, with 

sales up 1.5% on the month to a record C$8.9 billion. 

     --CONCENTRATED GAINS 

     Overall, gains were concentrated in three sectors, which, however, 

represent 54% of wholesale trade. 

     On the downside, along with autos and parts, farm product sales 

fell 10.2%, building material and supplies were down 0.4%, and 

miscellaneous sales edged down 0.1%. 

     --GAINS WIDESPREAD REGIONALLY 

     Regionally, gains were widespread across seven provinces, led by 

British Columbia (+1.6%) and Quebec (+0.9%). 

     However, sales in Ontario were down 0.7% on the month. Given that 

the province represents more than half of the total sales value, the 

decline weighed heavily on the national performance. 

     Sales excluding the province of Ontario rose 1.0% in April after a 

flat reading in March. 

--MNI Ottawa Bureau; email: yali.ndiaye@marketnews.com

[TOPICS: MACDS$,M$C$$$]