Wholesale sales advanced across most trade sectors in July, Statistics Canada said today. However, total growth was limited to a 0.1% increase because of lower sales in the automotive sector. Excluding the auto sector, sales rose 1.1%, StatsCan said.

StatsCan said the building boom continued to spur wholesale sales of building materials, which rose 1.7% in July. Increased sales were also recorded by distributors of food, beverage and tobacco products, up 2.0) and farm products, up 1.4%).

In contrast, wholesalers in the automotive sector saw their sales drop 3.5%.

According to the statistical agency, total wholesale sales have generally increased since September 2003, with an average monthly growth of 1.2%. In part, this robust growth was attributable to strong sales of motor vehicles, goods in the “other products” category, and computers and other electronic equipment, which together account for roughly 35% of wholesale trade. Previously, wholesale sales went through a strong period of decline starting in March 2003.

Wholesale sales of motor vehicles declined 4.2% in July, offsetting the 3.7% gain in June. The weakness of vehicle exports in July partly explains the contraction of sales in this trade group, StatsCan said.

Wholesalers of motor vehicle parts and accessories also saw their sales decline, although more modestly at 0.6%. However, this contraction follows a strong increase of 4.5% in June.

After generally declining from November 2002 to August 2003, sales of motor vehicle parts and accessories picked up in the fourth quarter of 2003. Even so, the increases registered since then have not yet made up for the declines recorded in the previous period.


Wholesalers in British Columbia posted a second consecutive gain in July, rising 3.1%). Wholesalers in Quebec registered a third consecutive rise in sales with an advance of 1.6% in July.

The largest declines were registered in Manitoba, down 7.3% and Prince Edward Island, down 4.3%.

StatsCan said wholesalers’ inventories rose 0.6% in July. This increase was almost entirely attributable to wholesalers of motor vehicle parts and accessories, who kept inventories higher than usual for this time of year. The trend in total inventories has generally been upward since November 2003, after a five-month period when wholesalers strove to cut back their inventories.