Wholesale sales rose 2.4 per cent to $84.2 billion in January as sales increased in six of the seven subsectors, accounting for 84 per cent of wholesale sales, reported Statistics Canada on Thursday.
Statistics Canada
Strong growth in the machinery, equipment and supplies subsector and the food, beverage and tobacco subsector led the increase for January, added the federal agency.
“Following a sharp decline in December, sales of machinery, equipment, and supplies rose 3.2 per cent to $17.7 billion in January. Two out of the four industry groups reported a rise in sales. However, the increase (+10.6 per cent to $6.1 billion) of the construction, forestry, mining and industrial machinery, equipment and supplies industry group led the overall subsector growth. Rebounding sales of this industry group in January were attributed to a ramp up of deliveries and work from seasonal shutdowns or slowdowns of various components of this industry group. Higher sales of machinery, equipment and supplies align with the increased import activity of these commodities in January,” said the report.
“The food, beverage and tobacco products subsector reported an increase of sales (+3.6 per cent to $15.7 billion) for the second consecutive month in January. Growth was reported in two of the three industries. However, it was the increase of the food industry group (+4.2 per cent to $14.0 billion) that contributed the most to the monthly increase. As reported in the latest Consumer Price Index release, food prices have risen at a slightly faster pace year over year in January, with higher prices in meat, bakery products, dairy products and fresh vegetables.
“The only declining subsector in January was motor vehicle and motor vehicle parts and accessories, down 2.4 per cent to $13.3 billion. A decline was reported in two of the three industries, but it was predominantly a decline of motor vehicle sales (-2.4 per cent to $10.6 billion) that led the drop. The decrease of sales in January was due to a ramp up of sales in the last quarter of 2022 in addition to companies gearing up production for more electrical vehicle sales.”
The report said wholesale inventories rose, up 1.5 per cent to $128.6 billion in January after edging up by 0.7 per cent in December. As was the case in December, higher inventories were reported in three of the seven subsectors in January. The largest increases came from the personal and household goods subsector and the building material and supplies subsector. Partially offsetting the increases were declines in the miscellaneous subsector and the motor vehicle and motor vehicle parts and accessories subsector, said StatsCan.
(Mario Toneguzzi is Managing Editor of Canada’s Podcast. He has more than 40 years of experience as a daily newspaper writer, columnist, and editor. He worked for 35 years at the Calgary Herald, covering sports, crime, politics, health, faith, city and breaking news, and business. He works as well as a freelance writer for several national publications and as a consultant in communications and media relations/training. Mario was named in 2021 as one of the Top 10 Business Journalists in the World by PR News – the only Canadian to make the list)
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