21 April 2009

Wholesale trade fell in February

The following was reported on in today's "Financial Post".

The value of Canada's wholesale trade fell unexpectedly in February, led by a drop in machinery and equipment sales. Statistics Canada said Tuesday that wholesale sales declined 0.6% to $41-billion during the month, the lowest level since November, 2006.

Most economists had expected wholesale trade to rise more than one per cent in February, after falling 4.2% the previous month.

"Canadian wholesalers sell to both the domestic and international markets, and are active importers and exporters," Statistics Canada said. "The decline in sales reflected both lower export demand for Canadian goods, a significant part of which flows through wholesale markets, and weaker sales in Canada."

Machinery and equipment sales fell 5.2% in February. "Within this trade group, declines were observed in industrial as well as in mining, oil and gas well machinery and equipment wholesalers," the federal agency said.