Canadian wholesale sales rose for the first time in nine months in June, up 0.6% from May on higher sales of automotive products as well as food, drink and tobacco, Statistics Canada said Thursday.

Analysts predicted a 0.3% increase in June.

In terms of volume of sales, June wholesale trade was up 1.0%, the third consecutive monthly increase.

In June, three of the seven sectors, accounting for just over one-half of total wholesale sales, posted gains.

Sales in the automotive products sector increased by 3.3% from May, but were still 24.6% below levels in June 2008. The food, beverages and tobacco products sector rose 1.8% from May, mainly on higher sales of food.

Sales in the other products sector fell by 2.2%, mainly due to lower sales by agricultural chemical and other farm supplies wholesalers. Wholesale inventories fell by 1.1% from May, the fourth consecutive monthly decline.

IE