Canada June Wholesale Sales Beat Forecasts With 0.6% GainGreg Quinn
Canadian wholesale sales rose for a third month in June, exceeding economist forecasts on gains in building materials and farm supplies.
Sales climbed 0.6 percent to C$53.0 billion ($48.4 billion), Statistics Canada said today in Ottawa, faster than all 11 responses in a Bloomberg survey that had a median forecast increase of 0.4 percent. Receipts have risen 8.7 percent since June 2013.
The data add to reports of growth in Canada’s merchandise trade surplus, building permits and manufacturing sales, suggesting the world’s 11th economy rebounded in the second quarter after a tough winter disrupted production. The central bank has said it will take about two years for the economy to return to full output as investment and exports grow.
“Real wholesale sales grew a sizable 15.5 percent annualized in the second quarter, the best since the third quarter of 2009,” Krishen Rangasamy, senior economist at National Bank Financial in Montreal, said in a note to clients. The strong data “are much in line with our view that Canada’s GDP growth accelerated sharply in the second quarter after a slow start to the year.”
Canada’s currency was little changed from yesterday following the report, trading at 1.0942 per U.S. dollar at 9:33 a.m. in Toronto.
Five of seven major wholesaling categories, representing 69 percent of sales, posted increases. Building materials and supplies rose 2.2 percent to a record C$7.60 billion, Statistics Canada said. Agricultural supply sales rose 4.9 percent, contributing to a 3.1 percent gain in the miscellaneous category to C$6.88 billion.
Those gains were curbed by a 2.4 percent decline in motor vehicle and parts sales to C$9.06 billion. Excluding that category, wholesaling rose 1.2 percent in June.
The inventory-to-sales ratio, a measure of how many months it would take to deplete stocks at the current sales pace, was unchanged at 1.24 in June, as stockpiles rose 1.0 percent to C$65.9 billion.
The volume of wholesale sales, which removes the impact of price changes, rose 0.7 percent in June, Statistics Canada said.
The June increase was slower than the 2.3 percent gain in May and April’s 1.4 percent advance.