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, December 19, 2001 Wholesale tradeOctober 2001(preliminary)Wholesale sales fell for a second consecutive month in October. This weakness was led by strong declines in the electronics and automotive sectors. Wholesalers sold $32.2 billion worth of goods and services in October, down 0.9% from September. Wholesale sales have generally levelled out since late spring after climbing earlier in the year. Prior to this, sales had flattened during the latter half of 2000. Wholesalers of computers and electronics (-7.0%) and of motor vehicles, parts and accessories (-4.3%) experienced strong declines. Important declines in terms of value also occurred in the "other products" category (-1.9%) and in the industrial machinery sector (-0.2%). These four sectors account for 55% of total wholesale trade. The "other products" category includes toys and novelties, sporting goods, industrial chemicals and agricultural supplies. Healthy wholesale sales were reported in most other sectors. Wholesalers of farm machinery reported an increase of 4.8%. Other wholesale sectors posting notable increases were food products (+2.3%), lumber and building materials (+1.7%), beverage, drug and tobacco products (+1.6%) and metals and hardware (+1.5%). Wholesale sales of electronics and automotive products continued to erodeWholesalers of computers and other electronics reported a 7.0% drop in sales in October, more than eliminating their healthy comeback in September. Sales have tumbled 16.0% since the start of the year, when wholesale sales in this sector were at their highest level after the Y2K sales peak (mid-1999). Wholesale sales for this sector now rest at mid-1998 levels. The weak personal computer market is primarily responsible for the sector's weakness.
Wholesalers of motor vehicles, parts and accessories saw their sales drop 4.3% in October, their second monthly decline in a row. Since the summer, sales in the sector have contracted 7.7%. The beginning of 2001 saw their wholesale sales generally rebound following a period of flat and then falling sales in 2000. Almost 90% of Canadian automotive production is exported to the United States. Both automotive manufacturing (-14.4%), and exports of passenger autos (-2.1%) fell in October. Housing market boosted wholesalers of hardware and building materialsWholesale sales rose in the lumber and building materials (+1.7%) and the metals and hardware (+1.5%) sectors in October. This occurred despite the current overall gloom in the lumber and metals industries. Sales of metals and hardware have been generally cascading downward since the start of 2000. Since summer, lumber and building materials sales have started to plateau after having been on the rise since the start of the year. Wholesale sales in this sector were generally falling in 2000. Wholesalers with links primarily to the housing market contributed to October's rise. The housing industry, spurred on by low interest rates, remained strong in October. Low wholesale sales of automotive products impacted Ontario's performanceFour provinces showed strong sales increases, while four provinces showed strong declines. Not surprisingly, the provinces where wholesalers reported strong declines in automotive products, electronics and other general products were also the provinces that turned in a weaker wholesale performance. Wholesale sales fell 2.6% in Ontario. The performance of wholesale trade in Ontario has generally mirrored that of the overall wholesale automotive sector. The wholesaling of automotive products represents approximately 30.0% of the total wholesale activity in the province. Similar to the wholesaling of automotive products at the national level, total wholesale sales have weakened in Ontario since the summer. Total sales had been on the rebound at the start of 2001 following a period of falling sales that started mid-2000. In contrast, broad-based gains in all sectors except automotive products helped Quebec wholesalers observe a 1.4% increase in October. Strong wholesale sales in the food product sector particularly contributed to the rise. Quebec was also one province where September's healthy sales in security and telecommunications electronic components continued into October. Wholesale inventories rose for the first time in four monthsWholesale inventories rose for the first time in four months, up 1.1% to $43.5 billion. The inventory buildup was primarily observed in automotive products (+4.0%) and industrial machinery (+1.9%). The inventory increase in motor vehicles, parts and accessories followed two consecutive monthly declines. In industrial machinery, the increase followed four straight monthly declines. Despite the rise in October, wholesale inventories have been falling throughout 2001. The sharp increase in inventories in October forced the inventory-to-sales ratio to rise from 1.32 in September to 1.35. Available on CANSIM: tables 081-0001 and 081-0002. The October 2001 issue of Wholesale trade (63-008-XIB, $14/$140) will be available shortly. For general information, or to order data, contact Client Services (1 877 421-3067 or 613-951-3549; wholesaleinfo@statcan.gc.ca). For further analytical information, or to enquire about the 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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