Wholesale sales edged down slightly in October, leading the industry to its first back-to-back monthly declines in two years, Statistics Canada reported today.

Lower sales of automotive products were responsible for most of October’s decrease.

After falling 1.8% in September, wholesale sales slipped a further 0.2% in October to $41.6 billion, the government agency said.

Most of the decline was caused by a 3.2% drop in automotive sales, which have fallen continuously since hitting a peak in July.

Small declines in sales were also registered by wholesalers of building materials, “other products” and food, beverage and tobacco products.

A more positive picture emerges once the drop in automotive sales is excluded, with overall sales outside of the auto sector rising 0.4% in October.

Wholesalers of machinery and electronic equipment gained 2.5%, personal and household goods rose 1.2% and farm products shot up 4.7% during the month.

While the overall trend for the wholesale sector remains positive, it has eased somewhat over the past few months, in line with the general softening of the Canadian economy.

According to the latest quarterly gross domestic product release, the Canadian economy grew at an annualized rate of 1.7% in the third quarter, its slowest pace in three years.

Sales in constant dollars decreased 0.8% in October, StatsCan said.