- Glen Hodgson, senior vice-president and chief economist at the Conference Board
Canada wholesale sales soared for a third consecutive in June, advancing 0.6% to $53 billion from May and volume of sales rose 0.7%, with increases in most sectors offsetting drops in autos and personal and household goods. Statistics Canada also revised up May's figure to 2.3% from 2.2%. The 2.4% decline in the auto industry followed a gain of 9.8% in May. Excluding autos and parts, wholesale trade rose 1.2 %. One of the key contributors to the positive data was the agricultural supplies industry, which surged as much as 4.9%. The upbeat data add to reports of growth in Canada's merchandise trade surplus, building permits and manufacturing sales, pointing the world's 11th economy rebounded in the second quarter after a tough winter undermined production. Last week Statistics Canada reported that manufacturing sales had posted another rise in June, as sales increased 0.6% to $52 billion, following the upwardly revised 1.7% advance a month earlier. Canada's June trade surplus widened on higher export volumes, overshooting expectations and hitting its highest dollar value since December 2011. Nevertheless, the central bank has said it will take about two years for the Canadian economy to return to full output as investment and exports grow.
Following the release of the data, the Canadian Dollar was little changed against its U.S. peer, with USD/CAD easing up 0.02% to fetch 1.0944.
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