Wholesale trade

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Wholesale sales edged down 0.1% to $46.8 billion in April, following a 0.3% gain in March. After an upward trend in the second half of 2010, sales have remained relatively flat so far this year.

In volume terms, wholesale sales declined 0.3% in April.

Mixed results among the subsectors

In April, gains in three of the seven subsectors were offset by declines in the four others, particularly in the miscellaneous and the building material and supplies subsectors.

The miscellaneous subsector accounted for the largest decline in April, with sales falling 3.6%. All of the component industries declined, with agricultural supplies accounting for half of the drop. Poor weather and spring flooding in Canada and the United States may have contributed to lower sales of fertilizer and seeds in April. International merchandise trade data for April showed an 11% decline in exports of fertilizers and fertilizer materials.

The building material and supplies subsector (-1.3%) posted its second consecutive decrease. Among the industries in this subsector, the lumber, millwork, hardware and other supplies industry declined the most. This coincided with a drop in construction activities in Canada and lower lumber exports to the United States.

The two other declines in April were in the motor vehicle and parts and the farm product subsectors.

The largest gain was in the personal and household goods subsector (+1.8%), followed by the food, beverage and tobacco products subsector (+1.2%). Most of the industries in these two subsectors posted increased sales.

Despite the increase in April, sales of personal and household goods have been relatively flat since the beginning of 2010. This reflects weak consumer spending on furniture, furnishings and household equipment and maintenance.

Wholesale sales down in half of the provinces

Sales were down in five provinces in April.

In dollar terms, Alberta (-3.8%) and Saskatchewan (-10.6%) reported the largest sales declines in April. Lower sales in the agricultural supplies and the farm, lawn and garden machinery and equipment industries were the main contributors.

British Columbia (-0.9%) registered its third consecutive decline in April.

Ontario, which accounts for about half of Canada's total wholesale sales, increased 0.9% in April. Sales in Quebec rose 1.7%. The increases in these provinces were attributable to higher sales of personal and household goods and food, beverage and tobacco products.

Inventories continue to rise

Inventories rose 1.8% to $56.1 billion in April. This was the fourth consecutive increase for inventories.

In April, higher inventory levels were reported by wholesalers in 16 of the 25 industries, led by the farm, lawn, garden, machinery and equipment industries (+14.7%).

The inventory-to-sales ratio increased from 1.18 in March to 1.20 in April.

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.

Available on CANSIM: tables 081-0011 to 081-0013.

Definitions, data sources and methods: survey number 2401.

The April 2011 issue of Wholesale Trade (63-008-X, free) will soon be available.

Wholesale trade data for May will be released on July 20.

To obtain data, or for more information, contact Client Services (613-951-3549; toll-free 1-877-421-3067; wholesaleinfo@statcan.gc.ca). To enquire about the concepts, methods or data quality of this release, contact Farzana Choudhury (613-951-2020; farzana.choudhury@statcan.gc.ca), Distributive Trades Division.