- CIBC economists
Wholesale sales in Canada increased in October, led by higher prices for live animals that pushed agricultural receipts to record high. Sales climbed 0.1% to C$54.2 billion, Statistics Canada reported, as farm products, which were the largest contributor to gains, soared 13.5% to C$815 million. Live-animal prices in the raw materials price index surged 24.6% in the reported month from a year earlier. Wholesale sales have risen 7.5% over the last 12 months through October. The surge comes as policy makers including Bank of Canada Governor Stephen Poloz said that sustained momentum in exports and business investment is required to complete an economic recovery over the next two years. The volume of wholesale sales, which strips out the impact of price changes, shrank by 0.1%.
However, other relevant data for the monthly gross domestic product outlook failed to provide positive support. Canadian factory shipments dropped more than projected in October, largely owing to a decline in production of aerospace products, following a record increase in the preceding month. Sales fell 0.6% to $52.7 billion, Statistics Canada reported earlier in the week. At the same time, Canada's trade surplus narrowed in October, driven by a jump in imports of consumer goods and aircraft. Overall, imports climbed 0.5%, while exports grew 0.1%, resulting in a $99 million surplus.
© Dukascopy Bank SA