MNI DATA IMPACT: Canada Aug Wholesale -1.2% Vs +0.4% Expected>

By Greg Quinn and Anahita Alinejad

     OTTAWA (MNI) - Canadian wholesale sales fell in August with gains 

spread across most industries, and a measure of stockpiles climbed back 

to a level unseen in more than two decades.

     Receipts declined 1.2%, unwinding most of July's 1.4% increase, 

Statistics Canada said Wednesday from Ottawa. The decline was unexpected 

with the MNI economist median calling for a 0.4% increase. July sales 

were also revised down to a 1.4% gain from 1.7%. 

     Pharmaceutical imports that boosted July transactions faded in 

August and there were also declines in everything from machinery and 

equipment to clothing and footwear. Auto and parts receipts fell 1.2%, 

mirroring weakness that brought a surprise decline in Tuesday's retail 

sales report. 

     Unlike for retail, August wholesale sales excluding price changes 

declined with a 1.3% contraction. The so-called volume figures are more 

in line with GDP figures due out later for August. 

     While wholesale inventories declined for the first time in 12 

months with a 0.3% fall, the larger sales decline nudged the ratio of 

inventories to sales back up to 1.45 in August. That matches a mark set 

earlier this year that was the highest since 1995. 

     Economic growth from July through September is expected to slow by 

about half from the second quarter's 3.7% annualized pace, as a burst of 

energy production subsides and consumer spending fades. The Bank of 

Canada has held interest rates unchanged this year on signs the economy 

stayed close to full capacity even as risks from global trade disputes 

have climbed. 

--MNI Ottawa Bureau +1-613-314-9647; greg.quinn@marketnews.com

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