MNI DATA IMPACT: Canada Wholesale Sales +0.6%; Ex Autos +1.2%>

By Yali N'Diaye

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

data on the Canadian wholesale sales released Thursday by Statistics 

Canada: 

     - Total wholesale sales rose 0.6% in January to C$63.5 billion, the 

largest gain since October 2018. The monthly advance lifted the 12-month 

growth rate to 1.8% from 1.7%. December was unrevised at +0.3%. 

     - Details of the report were generally robust, with widespread 

gains across sectors and regions. Sales increased in five of 7 

subsectors, representing 70% of total wholesale trade. Regionally, sales 

were up in 7 provinces, representing 90% of wholesale trade. 

     - Illustrating the strength of core sales, wholesale sales 

excluding autos and parts rebounded 1.2%, twice as much as the headline 

growth rate. Motor vehicles and parts fell 2.1% on the month, the 

largest decline since June 2018. On the upside, machinery and equipment 

sales increased 1.9%, owing to higher volumes, a positive sign for 

investment activity in Canada, especially after a disappointing fourth 

quarter. Personal and household goods were the other major positive 

contributor, boding well for the retail sales release Friday. 

     - Another encouraging sign was the fact that January's increase was 

driven by volumes, as real sales growth picked up to 0.7% from 0.2% the 

previous month, the largest monthly gain since May 2018. However, real 

sales were still down 0.5% year-over-year. 

     - Inventories were up 0.4%, increasing for the fifth consecutive 

month. The inventory-to-sales ratio remained unchanged at 1.43. 

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

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