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Wholesale trade

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August 2009 (Previous release)

Wholesale sales in current dollars fell 1.4% to $41.0 billion in August, following a 2.6% increase in July. Weaker sales in the automotive products, machinery and electronic equipment, and building materials sectors were the major factors contributing to the decline.

Wholesale sales fall for the first time in three months

In volume terms, wholesale sales were down 0.8% in August.

Although sales in all seven wholesale sectors fell in August, losses in three sectors accounted for close to 90% of the total decline.

The largest decrease came in the automotive products sector, which fell 3.3% in August. Following a 17.8% increase in July, sales of motor vehicles fell 4.7%, the first decline in seven months. This drop coincides with the latest international merchandise trade data, which shows a decline in both Canadian imports and exports of passenger autos.

The machinery and electronic equipment sector declined 2.4% in August, with the machinery and equipment trade group (-5.8%) accounting for all of the loss. This trade group, which accounts for close to half of the sector, continued its downward trend that started in December 2008.

Note to readers

Wholesale sales in volume terms are calculated by deflating current dollar values using import and industry product price indexes. Since many of the goods sold by wholesalers are imported, fluctuations in the value of the Canadian dollar can have an important influence on the prices of goods bought and sold by wholesalers.

The wholesale sales series in chained (2002) dollars is a chained Fisher volume index with 2002 as the reference year.

Sales in the building materials sector fell 1.8% in August, following a 3.0% increase in July. Declines were seen in both the metal products (-4.3%) and building supplies (-1.7%) trade groups.

Wholesale sales down in seven provinces

After posting increases in July, wholesalers in Ontario and Quebec both reported lower sales in August. Ontario, which accounts for about half of Canada's total wholesale sales, saw a decrease of 2.2%. Lower sales in the automotive products sector was the major factor contributing to this decrease. In Quebec, sales fell 1.0%, with the personal and household goods and machinery and electronic equipment sectors accounting for most of the decline.

Wholesale sales fell in Alberta (-1.4%) and British Columbia (-1.6%), primarily as a result of lower sales in the machinery and electronic equipment sector.

Provincially, Saskatchewan registered the largest increase (+6.8%) in August, following a 4.8% decline in July. Higher sales in agricultural chemical and other farm supplies was the major factor contributing to the increase in August.

Inventories continue to fall

Wholesale inventories fell for the sixth month in a row, down 1.1% to $55.5 billion in August.

Overall, 11 of the 15 wholesale trade groups reported lower inventory levels, with the largest decline in dollar terms in machinery and equipment (-1.0%). Higher inventories were seen in food products (+1.1%) and computer and other electronic equipment (+1.2%).

The inventory-to-sales ratio remained unchanged at 1.35 in August.

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.

The inventory-to-sales ratio remains unchanged in August

Available on CANSIM: tables 081-0007 to 081-0010.

Definitions, data sources and methods: survey number 2401.

The August 2009 issue of Wholesale Trade (63-008-X, free) will soon be available.

Wholesale trade estimates for September will be released on November 19.

To obtain data or general information, contact Client Services (toll-free 1-877-421-3067; 613-951-3549; wholesaleinfo@statcan.gc.ca). To enquire about the concepts, methods or data quality of this release, contact Steve Chadder (613-951-0303; steve.chadder@statcan.gc.ca), Distributive Trades Division.

Table 1

Wholesale merchants' inventories and inventory-to-sales ratio
  August 2008 May 2009r June 2009r July 2009r August 2009p July to August 2009 August 2008 to August 2009 July 2009r August 2009p
  Wholesale inventories Inventory-to-sales ratio
  Seasonally adjusted
  $ millions % change    
Inventories 56,811 56,986 56,482 56,115 55,505 -1.1 -2.3 1.35 1.35
Farm products 188 172 172 174 168 -3.4 -10.5 0.38 0.37
Food products 4,476 4,660 4,633 4,643 4,692 1.1 4.8 0.64 0.65
Alcohol and tobacco 398 420 427 420 422 0.4 5.9 0.51 0.51
Apparel 1,905 2,016 1,991 1,980 1,928 -2.6 1.2 2.39 2.44
Household and personal products 4,103 3,860 3,791 3,786 3,755 -0.8 -8.5 1.45 1.41
Pharmaceuticals 3,911 4,087 4,109 4,239 4,250 0.3 8.7 1.21 1.22
Motor vehicles 4,459 3,953 3,759 3,763 3,678 -2.2 -17.5 0.72 0.74
Motor vehicle parts and accessories 3,271 3,434 3,453 3,439 3,374 -1.9 3.1 2.14 2.07
Building supplies 6,071 6,187 6,257 6,133 6,060 -1.2 -0.2 1.67 1.68
Metal products 3,069 2,943 2,823 2,719 2,606 -4.2 -15.1 2.53 2.54
Lumber and millwork 1,146 943 940 917 908 -1.0 -20.8 1.27 1.24
Machinery and equipment 11,654 12,475 12,491 12,468 12,339 -1.0 5.9 2.97 3.12
Computer and other electronic equipment 1,813 1,567 1,582 1,563 1,581 1.2 -12.8 0.61 0.61
Office and professional equipment 2,825 2,875 2,795 2,721 2,706 -0.6 -4.2 1.34 1.31
Other products 7,522 7,395 7,257 7,151 7,039 -1.6 -6.4 1.42 1.41
revised
preliminary
Note(s):
Figures may not add up to totals due to rounding.

Table 2

Wholesale merchants' sales
  August 2008 May 2009r June 2009r July 2009r August 2009p July to August 2009 August 2008 to August 2009
  Seasonally adjusted
  $ millions % change
Total, wholesale sales 45,559 40,238 40,514 41,558 40,963 -1.4 -10.1
Farm products 475 461 457 459 448 -2.2 -5.5
Food, beverages and tobacco products 7,902 8,059 8,187 8,047 8,035 -0.2 1.7
Food products 7,097 7,240 7,342 7,230 7,211 -0.3 1.6
Alcohol and tobacco 804 819 845 817 824 0.9 2.4
Personal and household goods 6,775 6,819 6,883 6,952 6,937 -0.2 2.4
Apparel 827 798 813 828 789 -4.7 -4.6
Household and personal products 2,706 2,601 2,630 2,608 2,663 2.1 -1.6
Pharmaceuticals 3,241 3,420 3,439 3,516 3,485 -0.9 7.5
Automotive products 6,952 5,695 5,974 6,796 6,575 -3.3 -5.4
Motor vehicles 5,415 4,188 4,407 5,192 4,949 -4.7 -8.6
Motor vehicle parts and accessories 1,537 1,507 1,566 1,604 1,626 1.4 5.8
Building materials 6,566 5,333 5,306 5,466 5,369 -1.8 -18.2
Building supplies 3,906 3,554 3,549 3,671 3,607 -1.7 -7.7
Metal products 1,752 1,075 1,037 1,074 1,028 -4.3 -41.3
Lumber and millwork 908 705 719 721 734 1.8 -19.1
Machinery and electronic equipment 10,130 8,914 8,854 8,814 8,602 -2.4 -15.1
Machinery and equipment 5,249 4,293 4,190 4,205 3,960 -5.8 -24.6
Computer and other electronic equipment 2,790 2,545 2,601 2,576 2,579 0.1 -7.6
Office and professional equipment 2,091 2,076 2,064 2,033 2,063 1.5 -1.3
Other products 6,760 4,956 4,853 5,025 4,997 -0.5 -26.1
Total, excluding automobiles 38,607 34,543 34,540 34,762 34,389 -1.1 -10.9
Sales, province and territory              
Newfoundland and Labrador 283 291 278 287 288 0.2 1.8
Prince Edward Island 40 36 36 38 38 -0.5 -5.9
Nova Scotia 607 562 577 578 576 -0.3 -5.1
New Brunswick 467 435 453 451 457 1.3 -2.1
Quebec 8,678 7,958 7,811 7,997 7,915 -1.0 -8.8
Ontario 21,479 19,664 19,968 20,835 20,369 -2.2 -5.2
Manitoba 1,180 1,057 1,082 1,131 1,130 0.0 -4.2
Saskatchewan 2,020 1,330 1,308 1,246 1,331 6.8 -34.1
Alberta 6,124 4,818 4,797 4,781 4,714 -1.4 -23.0
British Columbia 4,618 4,024 4,141 4,157 4,089 -1.6 -11.4
Yukon 12 11 12 10 12 11.8 -0.8
Northwest Territories 47 43 46 43 42 -1.5 -9.7
Nunavut 6 7 4 5 3 -26.8 -42.3
revised
preliminary
Note(s):
Figures may not add up to totals due to rounding.