Canadian Wholesale Sales Picked up in March
Canadian Wholesale Sales Picked up in March
Canadian wholesalers saw sales increase by 0.6% in March partially reversing February’s large 2.1% decline. The report was largely in line with market forecasts. Wholesale sales volumes, which account for price changes, edged down by 0.1% following February’s 2% drop and resulting in a negative quarterly performance, with sales falling at a 4.5% annual rate relative to Q4 2007.
In March, five of the seven major categories showed higher sales. The largest gains were reported in machinery and electronic equipment and building materials. The automotive category showed a modest 0.5% increase although on a quarterly basis, sales were down for the fourth quarter running. The other products category, which includes agricultural chemicals, posted a small decline in March but still posted its strongest quarterly gain in five years.
March’s data reports were a mixed bag with the labour market still tight, retail spending likely firmer but manufacturing and wholesale trade weaker after price changes were taken into account. On balance, the data points to Canada’s economy on track for another sub-potential quarter for growth. The Bank maintained its easing bias in April and we look for an additional 25 basis point rate cut in the months ahead as a measure of insurance that policy is stimulative enough to sustain Canada’s domestic economy in the face of a widening trade drag.
RBC Financial Group
http://www.rbc.com
The statements and statistics contained herein have been prepared by the Economics Department of RBC Financial Group based on information from sources considered to be reliable. We make no representation or warranty, express or implied, as to its accuracy or completeness. This report is for the information of investors and business persons and does not constitute an offer to sell or a solicitation to buy securities.
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