Wholesalers ended 2006 on a high note, with the automotive sector providing much of the impetus for the largest monthly gain in over two years.

Statistics Canada said today that wholesale sales jumped 2.7% in December to $42.8 billion, the largest increase since March 2004. The month’s strong showing capped another robust year for wholesalers, as 2006 sales increased 6.5% to $501 billion, the third straight year of strong growth for the wholesale industry.

Overall, six of seven wholesale sectors grew in 2006, with farm products the only exception.

The machinery and electronic equipment sector led the way with a 9.7% increase in 2006, its highest in nine years.

A solid showing by the automotive sector, up 7.5%, was behind much of December’s rise, but there were also notable monthly gains in agricultural products, chemicals, recycled metals, personal and household goods and building materials.

Three sectors registered drops in December, with the most significant decline coming in the food, beverage and tobacco products sector.

Overall, wholesale inventories declined 0.8% in December, the largest one-month decline since May 2003.