-Joe Oliver, Canada's Finance Minister
Canada's wholesale sales unexpectedly increased in August, coming in at the second-highest amid gains in machinery, wood as well as metal products. Sales inched higher 0.2% from July to a seasonally adjusted C$53.1 billion, according to Statistics Canada, beating forecasts for a 0.3% drop. Machinery, equipment and supply sales increased 3.6% to a record C$11.3 billion, led by a surge in computer and communications equipment. The miscellaneous subsector also contributed to better sales. In contrast, autos and parts subsector fell 3.7%, erasing most of July's gains. Meanwhile, wholesale inventories rose for an eighth consecutive month in August, posting a 0.2% gain, reaching a record $66.8 billion, led by machinery, equipment and supplies subsector.
The better-than-expected wholesale data come on heels of last week's disappointing factory shipments report, which triggered concern around August's GDP growth. The data revealed that manufacturing sales dropped the most in over five years in August, down 3.3% to $52.1 billion, reversing last month's record increase, with major losses in the transportation equipment industry. In addition, Canada recorded the largest trade deficit in nine months in August, as imports rose 3.9%, whereas exports declined 2.5%, resulting in a $610 million trade gap.
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