Wholesale trade for October 2014

Ottawa - Wholesale sales edged up 0.1% to $54.2 billion in October, a second consecutive monthly increase. Gains were recorded in five of seven subsectors, representing 68% of wholesale sales. n volume terms, wholesale sales were down 0.1%.
Higher sales in five subsectors

 

In October, the farm product subsector recorded the largest increase in dollar terms, rising 13.5% to $815 million, its highest level on record. The Raw Materials Price Index recorded a seasonally unadjusted gain of 24.6% in the price of live animals in October compared with the same month last year.

 

Sales rose 0.9% to $6.9 billion in the miscellaneous subsector, a third consecutive increase. The agricultural supplies industry (+5.8%) accounted for most of the subsector's gain.

 

Sales increased in the machinery, equipment and supplies subsector for a third consecutive month, rising 0.4% to $11.7 billion. Gains in the construction, forestry, mining and industrial machinery, equipment and supplies industry (+3.1%) offset declines elsewhere in the subsector.

 

The building material and supplies subsector increased for a 10th consecutive month, rising 0.4% to $8.1 billion. The electrical, plumbing, heating and air-conditioning equipment and supplies industry (+1.9%) led the gain, increasing for an eighth consecutive month to reach its highest level on record.

 

Sales decreased 1.2% in the personal and household goods subsector, led by an 8.1% decline in the toiletries, cosmetics and sundries industry.
Sales up in five provinces

 

In October, wholesale sales were up in five provinces, together representing 70% of total wholesale sales in Canada. Saskatchewan contributed the most to the gain.

 

Sales in Saskatchewan rose for a third consecutive month, increasing 5.4% to $2.2 billion on the strength of gains in the miscellaneous subsector.

 

Following two consecutive declines, sales in Manitoba rose 3.9% to $1.5 billion. The farm product subsector and the miscellaneous subsector led the gain.

 

Ontario recorded a seventh consecutive monthly increase, as sales edged up 0.2% to $26.5 billion in October. Several subsectors contributed to the gain, led by the building material and supplies subsector.

 

Quebec slipped to its second highest level on record in October as sales decreased 1.0% to $9.8 billion. The food, beverage and tobacco subsector contributed the most to the decline.

 

After two consecutive monthly gains, sales in Newfoundland and Labrador declined 6.1% to $468 million.
Inventories rise in October

 

Inventories recorded their 10th consecutive increase in October, up 1.2% to $68.2 billion. Gains were recorded in six of seven subsectors, with the sole decline in the miscellaneous subsector.
The largest gain in dollar terms was recorded in the building material and supplies subsector (+2.6%), a second consecutive increase.

 

Inventories grew for a third consecutive month in the machinery, equipment and supplies subsector (+1.5%), while inventories in the food, beverage and tobacco subsector (+1.7%) rose for an eighth consecutive month.

 

The inventory-to-sales ratio rose from 1.25 in September to 1.26 in October. 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.