A pullback in the automotive sector was not enough to dampen wholesale sales in August, as wide-ranging gains elsewhere led the wholesale industry to its third increase in four months, Statistics Canada reported today.

Wholesale sales rose 0.5% to $42.6 billion in August, following a 2.2% rise in July.

The increase came despite a 7.4% drop in automotive product sales, which returned to more normal levels after posting strong growth in July; the sector accounts for about a fifth of all wholesale sales, so significant drops would normally be reflected in the overall wholesale number.

But sales outside the automotive sector advanced at a robust 2.6% clip in August, with all six of the remaining wholesale sectors registering gains.

Wholesalers of so-called “other products” (mainly agricultural products, chemicals and recycled metals), personal and household goods, and food, beverages and tobacco products were among the most notable gainers.

The wholesale sales trend has generally been rising since September 2003, in line with general economic growth, as wholesalers have been able to benefit from both the surge in business investment as well as strong consumer demand.