Archived ContentInformation identified as archived is provided for reference, research or recordkeeping purposes. It is not subject to the Government of Canada Web Standards and has not been altered or updated since it was archived. Please "contact us" to request a format other than those available. The Daily. Wednesday, June 20, 2001 Wholesale tradeApril 2001 (preliminary)Volatility was still evident in wholesale trade in April, as sales fell 0.9% to $31.9 billion. The drop follows a 1.8% rise in March. With one exception, since October 2000 wholesale sales have risen one month only to fall again the following month. On balance, overall wholesale sales have edged higher since the start of the year, after having levelled out beginning in mid-2000. Prior to this, wholesale sales were generally on the rise since mid-1998. April's drop was widespread; 8 of the 11 trade groups reported declines. The only ones to advance were apparel and dry goods (+2.2%), food products (+1.5%), and the other products category (+1.0%), which includes seeds and seed processing, agricultural chemicals and other farm supplies. Wholesale sectors reporting notable decreases were farm machinery, equipment and supplies (-3.6%); beverages, drugs and tobacco products (-3.4%); industrial and other machinery, equipment and supplies (-2.5%); motor vehicles, parts and accessories (-2.1%); and metals, hardware, plumbing and heating equipment and supplies (-2.1%). Wholesale sales of farm machinery down, and farm supplies upWhereas wholesalers of farm machinery, equipment and supplies reported a drop of 3.6% in April, wholesalers of agricultural chemicals and other farm supplies where strong contributors to the 1.0% increase in the other products category. The drop in April in wholesale sales of farm machinery, equipment and supplies followed three consecutive monthly increases. As a result, despite April's drop, wholesale sales of farm machinery, equipment and supplies have been generally rising since late 2000. After cascading downwards since early 1998, sales started to pick up in mid-1999 but were falling again by the summer of 2000. Three consecutive monthly increases ended for wholesalers of industrial machineryLower wholesale sales in the industrial and other machinery, equipment and supplies sector (-2.5%) followed three consecutive monthly increases. Uncertainty in the softwood lumber industry following the end of the softwood lumber accord in March was a contributing factor to April's decline. Except for a leveling-off of sales in the second half of 2000, wholesale sales in this sector were generally increasing since mid-1998. Most provinces suffered setbacksThe majority of provinces reported declines in April. Only wholesalers in Saskatchewan (+1.8%), Prince Edward Island (+0.6%), and Nova Scotia (+0.5%) reported higher sales. The weaker wholesale sales in industrial and other machinery, equipment and supplies, and in lumber and building supplies contributed to the 6.0% drop in sales reported by Newfoundland's wholesalers. These two sectors account for approximately 30% of Newfoundland wholesale sales. Alone, wholesale sales of industrial machinery accounts for one-fifth of total wholesale sales in the province. Since late 2000, wholesalers in Newfoundland have seen their sales decline. Prior to this, wholesale sales in Newfoundland were generally climbing since mid-1998. Wholesalers in Alberta saw their sales fall 1.1% in April. This drop followed four consecutive monthly increases. The fall in sales was broadly based; eight of the trade groups reported declines. Despite April's dip, Alberta continues to be the only province where wholesalers have seen their sales generally increase since mid-1998. Wholesale inventories unchangedThe value of inventories held by wholesalers remained relatively unchanged in April at $44.0 billion, down 0.1%. The two wholesale sectors with the largest inventory levels in terms of value - the industrial and other machinery sector and the automotive sector - remained unchanged. Overall, wholesalers have not been accumulating inventories since the start of the year. Previously, levels had been generally climbing over the last several years. An important decline in inventory was reported in the computer and electronic sector (-2.2%). In March, wholesalers in the computer and electronic sector built up their inventories to meet April shipping dates. The inventory-to-sales ratio rose marginally from 1.37 in March to 1.38 in April. The ratio has generally leveled off since the start of the year. Prior to this, the ratio had been generally climbing since mid-2000. Available on CANSIM: tables 810001 and 810002 and matrices 59, 61, 648 and 649. The April 2001 issue of Wholesale trade (63-008-XIB, $14/$140) will be available soon. Wholesale trade estimates for May will be released July 20. For data or general information, contact the Client Services Unit (1-877-421-3067; 613-951-3549; wholesaleinfo@statcan.gc.ca). To enquire about concepts, methods or data quality of this release, contact Alexander Hays (613-951-3552; haysale@statcan.gc.ca), Distributive Trades Division. Wholesale merchants' sales and inventories
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