MNI DATA BRIEF: Record Canada Q1 Wholesales on Housing Boom

Canada's wholesale sales rose a faster-than-expected 2.8% in March to cap a record first quarter, government figures showed Friday, more evidence of the economy's resilience in a difficult third wave of the Covid pandemic.

Economists predicted a 0.9% March increase based mostly on Statistics Canada's earlier flash estimate, with growth limited in a month where social distancing rules were being toughened again. First-quarter sales rose 3.9% and were up 8.9% from the same period last year.

About 90% of the quarterly increase came from building materials amid a North American homebuilding boom and machinery and equipment. StatsCan also reported March factory sales rose 3.5%, matching expectations, though both factory and wholesale sales may suffer in the next few months amid a global microchip shortage.