Canadian wholesale sales declined to $42.8 billion in December, Statistics Canada said Wednesday.

Wholesale sales fell 3.4% from November, the largest month-over-month decrease since August 2003.

In terms of volume of sales, December wholesale trade fell 3.6% from November.

“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,” StatsCan said.

The main driver for the December fall was a 10.4% plunge in the “other products” sector, reflecting declines in agricultural chemical and other farm supplies as well as recyclable metals.

In December, five of the seven sectors reported lower sales. The automotive products sector slipped by 3.4% on a 5.0% drop in sales of motor vehicles, which are now at the lowest since May 2001.

Wholesale inventories rose by 0.1% to record their 10th consecutive monthly increase.

IE