MNI DATA IMPACT: Canada Dec Wholesale +0.9% Vs +0.7% Expected>

--Sales Declined For First Time in 15 Quarters in Q4

By Greg Quinn and Anahita Alinejad

     OTTAWA (MNI) - Canadian wholesale sales rose for the first time 

in three months in December on a rebound in automobiles, taking some of 

the sting out of the first quarterly decline more than three years.

     Receipts advanced 0.9% following declines of 1.2% and 1.1% in 

October and November, Statistics Canada said Monday from Ottawa. The 

December gain beat the 0.7% MNI Median economist prediction. 

     Autos led the advance with a 1.9% rise following four prior 

declines. Four of seven major industries representing 63% of sales rose 

in December. 

     The fourth quarter remained a weak one with a 1.5% decline that 

broke 14 straight gains, and was the largest decline since 2009 during 

Canada's last recession. Weakness at the end of the year pulled down the 

growth rate for 2019 to 2.3%, the worst showing since 2013.

     The economy is poised to nearly stall in fourth-quarter GDP figures 

StatsCan publishes Friday, weakness leading the Bank of Canada to say a 

rate cut is on the table for the first time since 2015. Governor Poloz 

has said the key is whether weakness becomes persistent, so while the 

December gain is a good sign production this year is hurt by the 

coronavirus outbreak and a railway blockade this month in Ontario. 

     Wholesale inventories also remain close to the highest since 1995 

in December at 1.44, just below a peak of 1.45 set earlier in 2019. 

Those stockpiles suggest future sales may be slower as companies fill 

orders out of their stockpiles.  

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

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