Statistics Canada says wholesale sales hold steady at $57 billion

OTTAWA – Wholesale sales held steady at $57.0 billion in January as the first drop in sales of motor vehicles and parts in three months offset other gains, Statistics Canada said Thursday.

Economists had expected a gain of 0.2 per cent, according to Thomson Reuters.

In volume terms, overall sales fell 0.2 per cent for the month.

The machinery, equipment and supplies group led the gains in dollar terms as the sector increased 2.6 per cent to $11.5 billion.

However, sales in the motor vehicle and parts subsector fell 2.8 per cent to $11.0 billion, the first move lower in three months.

The wholesale sales report followed a better-than-expected reading on manufacturing sales in Canada on Wednesday that had raised hopes for the pace of growth in the first-quarter.

On Friday, Statistics Canada is expected to report retail sales results for January as well as inflation results for February.

Six provinces reported lower sales, mostly offset by gains in British Columbia, Quebec and Manitoba.

Ontario recorded the largest decline in dollar terms in January, as it fell 0.5 per cent to $29.1 billion due in large part to lower sales in the motor vehicle and parts subsector.

British Columbia gained 2.8 per cent to report sales of $5.5 billion, while sales in Quebec rose 1.4 per cent to $10.4 billion.

Manitoba rose 4.6 per cent to $1.5 billion and Prince Edward Island gained 3.8 per cent to 63 million.