Canadian Wholesale Sales Down 0.4% in November

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In volume terms, wholesale sales fell 0.8 percent in November.

Three out of seven subsectors reported declines, with lower sales in the miscellaneous subsector and the motor vehicle and parts subsector contributing to most of the decrease.

The largest sales decrease was observed in the miscellaneous subsector. Sales in this subsector fell 4.4 percent to C$6.6 billion (US$6.5 billion) in November, the lowest sales level since April 2011. All of the component industries were down, with the agricultural supplies (-8.2 percent) and the other miscellaneous industries (-5.6 percent) accounting for most of the decline.

Sales in the motor vehicle and parts subsector fell 1.1 percent, the first decrease in five months. The motor vehicle industry (-1.6 percent), which accounts for 75 percent of the subsector, was entirely responsible for the decline.

Wholesale sales in the building material and supplies subsector (-0.5 percent) also registered a decrease.

The largest increase in dollar terms occurred in the machinery, equipment and supplies subsector, which gained 1.3 percent in November. Of the four component industries, two reported increases. The construction, forestry, mining, and industrial machinery, equipment and supplies industry posted a 2.6 percent increase. Sales in this industry have risen 16.5 percent since the beginning of the year. The computer and communications equipment and supplies industry recorded a 2.7 percent increase for the month.

Sales by Province
Wholesale sales fell in six provinces in November, with Saskatchewan, Quebec and Alberta accounting for most of the national decrease.

Sales in Saskatchewan decreased 5.0 percent to C$1.9 billion (US$1.9 billion) in November, after large gains the previous two months. Lower sales in the agricultural supplies industry contributed to this decline. In Quebec, sales fell 0.6 percent in November, after a similar decline in October.

In Alberta, sales decreased 0.7 percent in November, following a 4.5 percent advance in October. This is the province's first decline in seven months. Sales in Ontario edged down 0.1 percent for the month.

Inventories
Inventories edged down 0.1 percent to C$57.7 billion (US$57 billion) in November, posting their first decrease in 11 months.

Overall, 13 of the 25 wholesale industries registered lower inventories. Wholesalers in the motor vehicle industry (-3.8 percent) and the personal goods industry (-5.0 percent) reported the largest decreases in dollar terms.

The inventory-to-sales ratio rose to 1.18 in November from 1.17 in October.

The inventory-to-sales ratio is a measure of the time in months required to exhaust inventories if sales were to remain at their current level.