March Wholesale Sales Down in 5 of 7 Sectors
May 30, 2016
Wholesale sales declined for a second consecutive month in March, down 1.0% to $54.6 billion. Lower sales were recorded in five of seven subsectors, led by the motor vehicle and parts subsector and the miscellaneous subsector. In volume terms, wholesale sales declined 0.4%.
Lower sales in five subsectors
Sales decreased in five of seven subsectors in March, accounting for 65% of wholesale sales.
The motor vehicle and parts subsector recorded a second consecutive decline in March, down 2.5% to $10.3 billion, its lowest level in four months. The motor vehicle industry contributed the most to the decline, with sales decreasing 3.3% to $7.8 billion. Lower imports and exports of motor vehicles and parts were also recorded in March.
In the miscellaneous subsector, sales declined 3.2% to $6.7 billion, a fourth consecutive decline. Lower sales were recorded by all industries, led by the agricultural supplies industry (-6.0%). Lower prices for fertilizer contributed to lower sales in this industry.
The food, beverage and tobacco subsector decreased 1.3% to $10.5 billion, following a 1.2% decline in February. Lower sales were recorded in all of the subsector’s industries, led by the food industry, down 1.4% to $9.4 billion.
Sales in the farm product subsector decreased 0.9% to $644 million, their fourth decline in five months. The decline in March brought sales in this subsector, which had reached their highest level on record in March 2015, to their lowest level since February 2014. Lower prices for live animals contributed to the decline in sales in March.
Higher sales were recorded in the machinery, equipment and supplies subsector, up 0.5% to $11.0 billion. Gains in the computer and communications equipment and supplies industry (+1.5%) and the farm, lawn and garden machinery and equipment industry (+2.4%) led the increase. Both industries recorded a decline in February.
Sales decrease in six provinces
In March, lower sales were recorded in six provinces, together accounting for 78% of wholesale sales. In dollar terms, Ontario contributed the most to the decline.
Ontario recorded a second consecutive decrease in March, with sales down 1.4% to $28.1 billion, their lowest level in four months. Declines were widespread across subsectors, led by motor vehicle and parts.
Sales in British Columbia decreased 3.2% to $5.2 billion, their lowest level since January 2015. Most subsectors recorded lower sales in March, led by the miscellaneous subsector.
Sales in Saskatchewan recorded their third consecutive decrease, down 4.1% to $1.8 billion, reaching their lowest level since December 2012. The agricultural supplies industry in the miscellaneous subsector contributed the most to the decline.
In Nova Scotia, sales declined 3.2% to $774 million, their lowest level in seven months. Lower sales in the food, beverage and tobacco subsector and the motor vehicle and parts subsector contributed the most to the decline.
Sales were down in Alberta for the third time in four months, declining 0.4% to $6.2 billion, led by lower sales in the motor vehicle and parts subsector and the building material and supplies subsector. The decline in March brought sales in the province to their lowest level since September 2011.
In Quebec, sales increased 1.3% to $10.1 billion in March, offsetting part of the decline in February. Higher sales in the personal and household goods subsector, the building material and supplies subsector, and the machinery, equipment and supplies subsector led the gain.
Inventories edge down in March
Wholesale inventories recorded a third consecutive decrease in March, edging down 0.1% to $72.6 billion, their lowest level in six months. Declines in the machinery, equipment and supplies subsector, which represented 29% of total wholesale inventories, accounted for most of the decrease.
Inventories in the machinery, equipment and supplies subsector (-0.9%) declined for the fourth time in five months, bringing the subsector to its lowest level in 11 months.
The food, beverage and tobacco subsector recorded lower inventories in March, edging down 0.1%, a second consecutive decline.
The building material and supplies subsector rose 0.6%, its second increase in nine months, while the personal and household goods subsector was up 0.5%, its third increase in four months.
The inventory-to-sales ratio increased from 1.32 in February to 1.33 in March. This ratio is a measure of the time in months required to exhaust inventories if sales were to remain at their current level.
Source: Statistics Canada, www.statcan.gc.ca/daily-quotidien/160519/dq160519a-eng.htm?HPA.
