MNI DATA REACT:Canada Wholesales Record -22%, Lowest Since '13

By Greg Quinn

     OTTAWA (MNI) - Canadian wholesale sales fell a record 22% in April amid

Covid-19 shutdowns that likely weren't as severe in May, the federal statistics

agency said.

     Sales fell to CAD49.8 billion, the lowest since July 2013, Statistics

Canada said Thursday from Ottawa. All seven major categories shrank for the

first time since 2008.

     The decline almost doubled the median economist forecast of 12%, following

other weaker-than-expected reports on manufacturing and inflation in recent

days. The volume of sales, which track better with GDP, fell to the lowest since

2009. That adds to downside risks of Q2 GDP already seen dropping at a 40%

annualized pace, frailty that new BOC Governor Tiff Macklem this week called a

"deep hole" to dig out of with more QE and rock-bottom interest rates.

     "May marks the second month of widespread lockdown and it is anticipated

that reported impacts on businesses for the month will not be as severe as seen

in April," StatsCan's report said. 

     Motor vehicle sales fell 65% to CAD3.3 billion to lead the declines, and

90% of personal and household goods suppliers said Covid-19 hampered their

business in April. The inventory to sales ratio jumped to a record 1.87 in April

from 1.45 in March.  

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

--MNI Washington Bureau; +1 202-371-2121; email: jean.yung@marketnews.com

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