- Doug Porter, BMO Capital Markets
Canadian wholesale sales rose for the third consecutive month in June, surpassing economists' expectations, official data revealed on Monday. According to Statistics Canada's report, the total value of Canada's wholesale trade jumped 0.7% in the reported month, compared to the preceding month's upwardly revised 1.9% gain., while market analysts anticipated a 0.5% growth in June. This gain was mostly driven by a surge in motor vehicles and parts that climbed 3.1% in the reported period. Furthermore, the personal and household goods sector posted a 2.0% hike in June, marking the fifth consecutive month of increases. In volume terms, wholesale sales increased 0.6% in the first month of summer. At the sector level, four out of ten Canada's wholesale trade sectors posted positive month-over-month growth in the reported month, accounting for 68% of the industry. Meanwhile, wholesale inventories dropped 0.1% in the sixth month of the year, whereas the inventory-to-sales ratio declined to 1.28 in the same month, compared to May's 1.29. Canada's economy contracted 0.6% in May in the wake of the Fort McMurray wildfires; however, it is expected to rebound in the Q3 of 2016. According to the latest industry survey from Statistics Canada, 12% of companies in wholesale trade claimed to be hit by the recent wildfires in Alberts, following May's reading of 14%. The machinery, equipment and supplies sector was most adversely affected by the Alberta wildfires.
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