Yesterday in Canada brought news that wholesale sales unexpectedly declined in February, the first drop in four months, led by automobiles and machinery. Sales declined 1.2% to C$43.8 billion (US$43.7 billion) according to figures released by Statistics Canada. Economists had expected a 1% increase.
Four of the seven wholesale categories recorded decreases in February. Motor vehicle sales fell 5.3%, the first decline since August. Machinery, equipment and supplies sales fell 2.8% while personal and household goods sales fell 1.5%.
Wholesale sales have gained 8.5% over the last year as companies sold goods out of their inventories to meet rising demand. The Bank of Canada said on Tuesday that it will begin raising interest rates to keep inflation in check as the economic rebound has been faster than expected.
Wholesale inventories rose 0.1% in February, the first increase since November 2008. The ratio of wholesale inventories-to-sales rose to 1.17 from 1.15, the first increase since August.
The agency began using a new sample of wholesalers in yesterday’s report and made other revisions to its data. Using the revised data the agency said January's wholesale sales rose 2.4%. Last month it had said wholesale sales rose 3%, the fastest in three years.
The Canadian dollar closed the day still above parity with the US dollar after hitting a low of CAD 1.00119 during Forex trading, it closed the day down 0.10% on yesterdays close at CAD 0.99895.
Four of the seven wholesale categories recorded decreases in February. Motor vehicle sales fell 5.3%, the first decline since August. Machinery, equipment and supplies sales fell 2.8% while personal and household goods sales fell 1.5%.
Wholesale sales have gained 8.5% over the last year as companies sold goods out of their inventories to meet rising demand. The Bank of Canada said on Tuesday that it will begin raising interest rates to keep inflation in check as the economic rebound has been faster than expected.
Wholesale inventories rose 0.1% in February, the first increase since November 2008. The ratio of wholesale inventories-to-sales rose to 1.17 from 1.15, the first increase since August.
The agency began using a new sample of wholesalers in yesterday’s report and made other revisions to its data. Using the revised data the agency said January's wholesale sales rose 2.4%. Last month it had said wholesale sales rose 3%, the fastest in three years.
The Canadian dollar closed the day still above parity with the US dollar after hitting a low of CAD 1.00119 during Forex trading, it closed the day down 0.10% on yesterdays close at CAD 0.99895.