The latest Canadian wholesale sales numbers up 0.3% in November reflects widespread growth say RBC Financial Group economists. Eight out of 11 sectors saw increases, especially other products (+2.1%), food products (+0.6%) and the automotive sector (+0.2%). Also, six out of 10 provinces witnessed a rise in wholesale trade.

Two subcomponents offered the most interesting details, says RBC. “One was the second consecutive monthly lift in computer sales (+1.1%, or 14% annualized) that provides a glimmer of hope for the beleaguered hi-tech sector. However, the drop in industrial machinery and equipment sales (-0.8%) does not bode well for business investment trends in Canada.”

RBC notes that inventories increased by a modest 0.1%, pushing the inventory-to-sales ratio fell again to an historic low. “Wholesale inventories that account for about one-fifth of total business inventories in Canada are very lean and this kind of strength in sales increasingly points to the need to invest in an inventory buffer going into 2003.”