Wholesale sales fell 0.6% to $41 billion in February, Statistics Canada said Tuesday. Declining sales in the machinery and equipment trade group and the “other products” sector were major factors contributing to this decrease.

In terms of the volume of sales, wholesale sales were flat, StatsCan said.

The government agency said the decline in sales reflected both lower export demand for Canadian goods, a significant part of which flows through wholesale markets, and weaker sales in Canada.

In February, four out of seven sectors, accounting for over two-thirds of total wholesale sales, posted declines.

The machinery and electronic equipment sector declined 1.6%, largely as a result of lower sales in the machinery and equipment trade group, which accounts for close to half of the sales in this sector.

Sales in the “other products” sector fell 4% to $5.3 billion in February, offsetting a 4% rise in January. The main contributors were declines in all other wholesalers and agricultural chemical and other farm supplies. This was the lowest level in this sector since August 2007.

Declines were also seen in the food and beverages sector, down 1%, and the building materials sector, down 0.9%.

The largest increase came in the automotive products sector, which rose 4% in February, following a 21.8% decline in January. Sales of motor vehicles increased 9.4%, offsetting some of the losses in January. Sales in motor vehicle parts and accessories fell 7.6% in February, its largest drop since April 2003.

Inventories edged up 0.1% in February, StatsCan said.

Among the 15 wholesale trade groups, seven reported higher inventory levels, including alcohol and tobacco, office and professional equipment and building supplies.

These increases were partially offset by declines in inventories of the lumber and millwork, computer and electronic equipment, and farm products trade groups.

IE