Wholesale trade in Canada, August 2010

Wholesale sales posted their largest increase since January 2010, rising 1.2% to $44.5 billion in August. Higher sales in the machinery, equipment and supplies subsector were a major contributor to this growth. In volume terms, wholesale sales were up 0.9% in August. Increases were reported in all subsectors, except for the food, beverages, and tobacco products subsector.

The largest increase in dollar terms came in the machinery, equipment and supplies sub-sector, which climbed 3.2% to $9.4 billion in August. This was the subsector’s highest level since December 2008. All four component industries that comprise this subsector increased, with the construction, forestry, mining, and industrial machinery, equipment and supplies industry (+4.7%) reporting the largest gain.

The miscellaneous subsector, which includes agricultural supplies, non-agricultural chemicals, paper products, and recycled materials industries, rose 3.4% in August, up for a third consecutive month. This gain was largely attributable to increases in the other miscellaneous (+5.9%), and the agricultural supplies (+3.4%) industries.

Wholesale sales up in most provinces
Wholesale sales were up in seven provinces in August, with Ontario and Alberta posting the largest increases in dollar terms. The largest contributor to the increase was Ontario, where sales rose 1.5% in August following a 0.3% decline in July. This was the province’s strongest month-over-month gain since November 2009. In Alberta, wholesale sales grew by 2.2%, helped by higher sales in the machinery, equipment and supplies subsector. This was the province’s 9th increase in 10 months. Sales in Manitoba rose 3.8% in August, increasing for the third consecutive month. Higher sales in the miscellaneous subsector contributed to this growth. Wholesale sales in Quebec remained unchanged following a 1.0% decline in July.