Wholesalers ended the third quarter on a bit of a down note as the industry recorded its largest monthly drop so far this year, Statistics Canada said today.

Despite the drop, sales growth in the third quarter accelerated thanks to the gains made in the previous two months.

Sales in five of seven sectors fell as the wholesale industry recorded its largest monthly drop so far this year in September, StatsCan said.

Sales fell 1.6% in September to $41.8 billion, with declines in five of seven wholesale sectors representing 85% of sales.

Wholesalers of automotive products were down 3.4% and machinery and electronic equipment sales were down 3.3%, bearing the brunt of the bad news.

September’s only positive notes came in building materials, up 1%, where sales were bolstered by a rebound in lumber and millwork sales, and the farm products sector (up 4.6%), which continued a string of recent gains.

The longer-term trend for the wholesale industry remained positive — wholesale trade has grown since the third quarter of 2003, making it one of the economy’s fastest growing sectors.

Third-quarter sales increased 1.6% compared with a modest 0.4% rise in the previous quarter.