Statistics Canada said Wednesday that wholesalers sold $35.8 billion worth of goods and services in June, essentially the same figure as in May.

Economists were actually expecting a small decline so this is a modestly positive number

However, second quarter sales declined 1.9% from the first quarter. This quarterly contraction was the biggest since the first quarter of 1998. Some sectors, however, posted increases, including industrial machinery which posted a 1.7% gain. An increase in this sector is often seen as a positive omen for recovery.

RBC Financial says large declines in farm machinery and other products categories, and, small declines in computer and electronic products and household goods, helped cancel out the gains.

Wholesale inventories were down, and the inventory to sales ratio slipped to 1.29 from 1.30 the month before.

“On slightly positive note, wholesale sales in constant dollars grew 0.8% in June which does provide a slight amount of upward support for June’s monthly GDP figure due out at the end of next week,” RBC says. “Nevertheless, second quarter GDP activity is expected to be flat to just slightly positive and there is little compelling evidence yet to suggest a marked pick-up in growth in the third quarter.”

RBC says that the wholesale report won’t do anything to derail an expected rate cut by the Bank of Canada.