- Andrew Grantham, Canadian Imperial Bank of Commerce economist
The value of Canadian wholesale trade unexpectedly declined in September, weighed by a decrease in motor vehicle and parts sales for the third consecutive month, according to Statistics Canada. Wholesale trade dropped 0.1% to C$55.2 billion, against economists' expectations for a 0.3% gain, while the volume of sales declined by 0.4%. August's figures were revised to show no change after an initially reported fall of 0.1%. Lower sales were registered in three of the major sectors, which make up 45% of wholesale trade. The motor vehicle and parts category was the major factor behind the decline, falling 3.0%. Excluding autos, overall sales rose 0.5%.
Economists have been predicting a strong economic recovery in the second half of the year, after Canada's GDP shrank during the first five months of 2015. In October, the Bank of Canada maintained its interest rate at 0.5%, citing persistent slack in the economy. It also raised third quarter growth outlook from 1.5% to 2.5%, while the tone of the statement remained cautious. Economists project the third quarter expansion will stay on track for 2.5% growth, but warn that the economy could end the quarter on a much softer note. The latest Canadian GDP figure for August revealed a 0.1% growth.
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