Canadian Wholesale Services Price Index Up 1.2% in 2Q

Five of the eight subsectors posted margin gains.

The Canadian wholesale services price index rose 1.2 percent in the second quarter, with five of the eight subsectors posting margin gains, according to Statistics Canada. This was the third consecutive quarterly increase.

Higher margins for machinery, equipment and supplies merchant wholesalers (+2.8 percent) contributed the most to the increase in the WSPI in the second quarter. The gain in this subsector was attributable to higher margins for merchant wholesalers of construction, forestry, mining, and industrial machinery, equipment and supplies (+2.2 percent), other machinery, equipment and supplies (+4.6 percent) and computer and communications equipment and supplies (+3.3 percent).

Also contributing to the increase were merchant wholesalers of motor vehicle and motor vehicle parts and accessories (+4.6 percent), who reported their largest quarterly gain since the first quarter of 2008. Higher margins were reported by merchant wholesalers of motor vehicle (+6.3 percent) and new motor vehicle parts and accessories (+2.8 percent).

To a lesser extent, building material and supplies (+1.8 percent), personal and household goods (+1.3 percent) and miscellaneous (+0.9 percent) merchant wholesalers also contributed to the gain.

Moderating the increase in the WSPI in the second quarter were lower margins for petroleum and petroleum products (-4.2 percent) and farm product (-8.9 percent), and to a lesser extent, for food, beverage and tobacco (-0.5 percent) merchant wholesalers.

The WSPI advanced 4.5 percent in the second quarter compared with the same quarter in 2015. This was the 11th consecutive year-over-year increase.

Miscellaneous merchant wholesalers (+10.1 percent) recorded the largest year-over-year margin gain. This subsector was followed by motor vehicle and motor vehicle parts and accessories merchant wholesalers (+8.4 percent), which registered the largest gain since the first quarter of 2008.

Margins were also up for food, beverage and tobacco (+6.0 percent), machinery, equipment and supplies (+4.9 percent) and building materials and supplies (+3.2 percent) merchant wholesalers.

Petroleum and petroleum products (-4.8 percent) and farm product (-1.6 percent) merchant wholesalers posted margin declines.

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