MNI DATA IMPACT:Canada Feb Wholesale Sls +0.3%;Ex Autos -1.5%>

By Yali N'Diaye

     OTTAWA (MNI) - The following are the key points from the February 

data on the Canadian wholesale sales data released Tuesday by Statistics 

Canada: 

     - Canadian wholesale sales rose 0.3% in February, lifting the 

12-month growth rate to 2.4% from 1.7% in January. February marked the 

third consecutive monthly increase. 

     - However, details showed activity was weak outside of the auto 

sector. Autos and parts sales jumped 9.5% after falling 2.1% in January, 

posting their largest increase since December 2015, entirely due to 

higher volumes. The only other category to post gains was miscellaneous 

sales (+0.5%). Together, the two subsectors represent 32% of wholesale 

trade. 

     - Illustrating the weakness of activity outside the auto sector, 

sales excluding autos and parts fell 1.5%, their largest decline since 

September 2017, entirely due to lower volumes. In particular, machinery 

and equipment fell 1.3% following a 1.9% drop the previous month, a 

negative sign for investment activity in Canada. On a 12-month basis,  

core sales rose 2.0%, their smallest increase since October 2016. 

     - Gains were also concentrated geographically, with only two 

provinces posting higher sales: Ontario and Saskatchewan. 

     - Inventories edged down 0.1% in February after rising 0.4% in 

January. As a result, the inventory-to-sales ratio declined to 1.42 from 

1.43. 

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

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