Canadian wholesale trade disappoints markets in September

Canada's wholesale trade dropped for the first since March in September, led by the machinery, equipment and supplies subsector fell, official figures revealed on Monday. According to Statistics Canada, the value of Canadian wholesale trade fell 1.2% in the reported month, following August's gain of 0.8% and falling behind the 0.3% increase forecast. On an annual basis, sales grew 2.8%. Data showed sales declined in five out of seven sectors, representing 65% of total sales. Furthermore, in volume terms, sales were down 1.5% in September. Sales of machinery, equipment and supplies declined 4.0%, while the miscellaneous subsector decreased 3.1%, mainly driven by an 8.0% fall of agricultural supplies sales. On the positive side, the motor vehicles and parts subsector, the largest in dollar terms, posted a 0.7% increase in the reported period, with sales of motor vehicles growing 2.2%. In regional terms, wholesale trade dropped in all provinces. Ontario, Quebec and Alberta accounted for 82% of the September decline. Sales in Ontario fell 0.7%, after hitting record highs for three consecutive months. The figures suggest the Canadian economy lost steam by the end of the Q3, as it fully rebounded after the Alberta wildfires, and is likely  now to show modest growth in the Q4.