MNI DATA IMPACT: Canada July Wholesale +1.7% Vs 0.0% Forecast>

By Greg Quinn and Anahita Alinejad

     OTTAWA (MNI) - Canadian wholesale sales rose the most in more than 

two years in July on motor vehicles and record medicine imports, 

strength that made a tiny dent in the most bloated inventories in over 

two decades. 

     Sales rose 1.7% from June to a record C$65.4 billion, well ahead of 

the MNI economist median calling for no change.  

     Motor vehicle and parts sales rose 4% to C$11.4 billion in July, 

the strongest showing for this category in July in a decade, Statistics 

Canada said Monday from Ottawa. Personal and household goods gained 4.7% 

led by a 20% jump in pharmaceuticals.

     The report meshses with the Bank of Canada's view the domestic 

economy is resilient and near full capacity, even as some investors are 

bettting a global trade war will lead policy makers to cut interest 

rates later this year. Sales have climbed in six of the first seven 

months of this year and are up 3.4% from July 2018.

     One trouble spot in today's report is a buildup on inventories, 

a potential sign companies are struggling to sell their goods. Even 

with the strong sales gain, the ratio of inventories declined only a 

notch to 1.44 in July from 1.45 in June. The June figure is the 

highest since October 1995. Total inventories climbed 0.5% in July, the 

11th consecutive increase.

     Excluding price changes, sales volumes rose 1.9% in July. The 

volume figures have a bigger influence on the July GDP figures that 

will be released on Oct. 1.

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

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