Wholesale sales declined 4.2% to $41.1 billion in current dollars in January, Statistics Canada said.

Lower activity in the automotive products sector was a major factor behind the decrease. Excluding the automotive products sector, wholesale sales fell 0.9%. In terms of the volume of sales, wholesale sales also fell 4.2%, the statistical agency reported.

Four of seven sectors, accounting for about two-thirds of total wholesale sales, posted declines in January.

The largest decrease came from the automotive products sector, which fell 22.9% to $5 billion in January and accounted for about 80% of the total decline.

Motor vehicle sales fell 30% to $3.4 billion, its lowest level since August 1996.

Other sectors that declined included the building materials sector (down 6.2%) and the machinery and electronic equipment sector (down 2.8).

The largest increase in January occurred in the “other products” sector, up 5.1% after an 8.4% drop in December. Agricultural chemical and other farm supplies and seed wholesalers led the way.

IE