Canada Wholesale Sales Fell 1.8% in October

(Bloomberg – Alexandre Deslongchamps)

Canadian wholesale sales fell more than three times as much as expected in October as demand for recyclable metals and cars slowed.

Sales dropped 1.8%, the most since February, to C$45.3 billion ($37.5 billion), Statistics Canada said today in Ottawa. Economists surveyed by Bloomberg said sales would fall 0.5%, the median of 13 estimates, after a 1.1% gain in September.

The sales decline was led by a 6.9% drop in sales of cars and trucks and an 8% plunge in the “other products” category, its biggest since March 2001, caused by lower demand and prices for recyclable metals. Car and truck sales were 14% below a year ago, the agency said.

Excluding autos, wholesale sales fell 1.2%, with four of seven industry components tracked by the statistics agency recording a decline. Inventories rose for an eighth straight month, gaining 0.8%.

Excluding price changes, sales tumbled 3.6% in October, Statistics Canada also said. The Canadian dollar depreciated during the month and boosted the cost of imported goods, the agency said to explain the discrepancy.

Summary statistics and a link to the data files are on the Statistics Canada website.