Wholesale sales were unchanged at $55.4 billion in July. Higher sales were recorded in three subsectors in July, led by the machinery, equipment and supplies subsector.
The machinery, equipment and supplies subsector increased 1 percent to $11.3 billion, its second consecutive increase. The largest contributor to the increase was the computer and communications equipment and supplies industry, which grew 4.6 percent to $3.8 billion, its highest level on record. This increase was partially offset by the construction, forestry, mining, and industrial machinery, equipment and supplies industry, which decreased 3.0 percent to $3.7 billion, its lowest level in four months.
Following a 2.8 percent advance in June, wholesale sales in the motor vehicle and parts subsector rose 0.2 percent to $10.3 billion in July, led by the motor vehicle industry (+0.5 percent). For both the subsector and the industry, it was the fourth increase in five months.
Sales in the miscellaneous subsector rose 0.3 percent to $7 billion, led by the chemical (except agricultural) and allied product industry (+6.5 percent) and the other miscellaneous industry (+2.2 percent).
In dollar terms, the food, beverage and tobacco subsector had the largest decrease, down 0.5 percent to $10.7 billion, driven by the food industry (-0.7 percent). This was the second decline in nine months for this subsector.
Sales in the building material and supplies subsector decreased 0.5 percent to $7.6 billion. The gain in the metal service centres industry (+2.3 percent) was more than offset by a decline in the electrical, plumbing, heating and air-conditioning equipment and supplies industry (-2.3 percent).
The farm product subsector decreased by 5.6 percent, its third decline in four months.
In July, wholesale sales were up in three provinces in July. Ontario recorded the largest increase in dollar terms. Gains were offset by lower sales in other provinces, led by Quebec.
Sales in Ontario rose 1.1 percent to $28.1 billion, a second consecutive increase, largely as a result of higher sales in the machinery, equipment and supplies subsector and the motor vehicle and parts subsector.
In British Columbia, sales grew 1.3 percent to $5.3 billion, led by the miscellaneous subsector. Prince Edward Island also posted an increase (+1.6 percent). This was the third consecutive gain for both provinces.
After increasing 3.3 percent to a record high $10 billion in June, sales in Quebec decreased 1.4 percent to $9.9 billion in July. Widespread declines were recorded across subsectors.
Sales in Saskatchewan fell 3.1 percent to $2.2 billion, its seventh consecutive decline and the lowest level since August 2014. Lower sales in the agricultural supplies industry contributed to the decrease. This industry also contributed to lower sales in Manitoba (-0.4 percent). Dry weather continued to explain the declines in these provinces.
Sales in Alberta declined 0.7 percent to $6.7 billion, its lowest level since December 2013. Declines were widespread, led by the building material and supplies subsector.
In Newfoundland and Labrador, sales fell 11 percent, more than offsetting the 12.1 percent increase in June. The miscellaneous subsector contributed the most to the decline.
Lower sales in the food, beverage and tobacco subsector led the declines in Nova Scotia (-3.9 percent) and New Brunswick (-2.7 percent).
Inventories rose 0.6 percent to $72.9 billion in July, a second consecutive advance. Increases were recorded in six of seven subsectors, accounting for 83 percent of total wholesale inventories.
The largest gain in dollar terms was in the machinery, equipment and supplies subsector (+0.9 percent), its seventh increase in eight months.
The miscellaneous subsector (+1.6 percent) increased for the seventh time in nine months.
Inventories rose for the third consecutive month in the personal and household goods subsector (+1.1 percent) and a second consecutive month in the motor vehicle and parts subsector (+1 percent).
The food, beverage and tobacco subsector (+1.2 percent) recorded a fourth consecutive increase.
The lone subsector to decrease in July was the building material and supplies subsector (-1.9 percent), which posted a fourth consecutive decline.
The inventory-to-sales ratio rose from 1.31 in June to 1.32 in July. 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.
