Canadian wholesale sales fell 0.3% to $40.1 billion in May, its lowest level since December 2005, Statistics Canada said Monday.

With May’s decline, wholesale sales have fallen for eight consecutive months.

However, the monthly decline was far smaller than the retreat of 2.1% that economists had been projecting.

In volume terms, wholesale sales were unchanged in May.

StatsCan said weaker sales in the machinery and equipment, food, and metal products trade groups were the major factors in May’s decrease.

Sales in the machinery and electronic equipment sector fell 0.2% in May. Sales in the sector have declined almost 20% since their September 2008 peak.

The food, beverage and tobacco products sector declined 1.2% in May, due to lower food sales.

Sales in the metal products trade group were down 7.7% — the seventh consecutive monthly decrease.

“The economic slowdown, and, in particular, the drop in activity in the oil and gas industry, have been major contributors to lower sales since the latter part of 2008,” StatsCan said in a release.

Sales of building supplies rose 2.8% in May after declining 3.4% in April. Statistics Canada said the rise coincides with an increase in housing starts as reported by the Canada Mortgage and Housing Corp.

IE