OTTAWA
,
July 17, 2023
(press release)
–
Wholesale sales (excluding petroleum, petroleum products, and other hydrocarbons and excluding oilseed and grain) rose 3.5% to $83.6 billion in May. The reported gain in sales was the largest monthly increase since November 2021. Sales increased in four of the seven subsectors. The growth in sales was led by the machinery, equipment and supplies, the miscellaneous, and the motor vehicle and motor vehicle parts and accessories subsectors, representing slightly over half of the sector sales. Wholesale sales (excluding petroleum, petroleum products, and other hydrocarbons and excluding oilseed and grain) were higher (+3.8%) than in May 2022. Petroleum products as well as oilseed and grain data continue to be available in data tables but will be excluded from monthly analysis until historical data are available for monthly and annual analysis. Constant dollar sales (excluding petroleum, petroleum products, and other hydrocarbons and excluding oilseed and grain) grew 3.3% in May 2023. Chart 1: Wholesale sales (excluding petroleum, petroleum products, and other hydrocarbons and excluding oilseed and grain) increase in May Increase of sales in the machinery, equipment and supplies subsector leads the wholesale sales growth The miscellaneous subsector also contributed to the sector increase, up 8.8% to $11.3 billion in May. Though the majority of the industry groups reported a climb in sales, the increase of sales in the agricultural supplies industry group (+26.1% to $4.2 billion) drove the overall subsector movement. Agricultural supply wholesalers reported delivery of multiple orders in addition to the seasonal demand for products. The third subsector that contributed to the strong monthly sector increase was the motor vehicle and motor vehicle parts and accessories subsector, up 7.1% to $13.7 billion in May. The motor vehicle industry group led the subsector rise, reporting an increase of sales (+8.8%) in May. Imports of motor vehicles and parts reached a record high in May, reflecting an improvement in supply chain conditions for Canadian automakers. Sales in Ontario lead provincial increase Wholesale sales in Ontario rose 3.1% to $42.6 billion in May. Sales increased in five of seven subsectors, with the largest contributor being the machinery, equipment and supplies subsector (+7.0% to $9.4 billion), followed by the miscellaneous subsector (+6.7% to $4.8 billion). Sales in Alberta increased by 6.8% to $10.0 billion in May. All seven subsectors had an increase in sales, led by the machinery, equipment and supplies subsector (+11.9% to $3.5 billion) and the miscellaneous subsector (+9.1% to $1.4 billion). Inventories fall in May A decrease of inventories was reported in four of the seven subsectors in May, led by the miscellaneous subsector (-4.9% to $16.0 billion) and followed by the building material and supplies subsector (-2.4% to $23.7 billion). The inventory-to-sales ratio decreased from 1.58 in April to 1.54 in May. This ratio is a measure of the time (in months) required to exhaust inventories if sales were to remain at their current levels. Note to readers Seasonally adjusted data are data that have been modified to eliminate the effect of seasonal and calendar influences to allow for more meaningful comparisons of economic conditions from period to period. For more information on seasonal adjustment, see Section 2: Issues related to analysis and interpretation. Trend-cycle estimates are included in selected charts as a complement to the seasonally adjusted series. These data represent a smoothed version of the seasonally adjusted time series (see Section 1: Concepts and definitions) and provide information on longer-term movements, including underlying changes in direction in the series. For information on trend-cycle data, see Trend-cycle estimates – Frequently asked questions. Both seasonally adjusted data and trend-cycle estimates are subject to revision as additional observations become available. These revisions could be large and could even lead to a reversal of movement, especially for reference months near the end of the series or during periods of economic disruptions. Total wholesale sales expressed in volume are calculated by deflating current dollar values using relevant price indexes. The wholesale sales series in chained (2012) dollars is a chained Fisher volume index, with 2012 as the reference year. For more information, see the publication ''Deflation of wholesale sales.'' The Monthly Wholesale Trade Survey covers all industries within the wholesale trade sector, as defined by the North American Industry Classification System (NAICS), with the exception of business-to-business electronic markets, and agents and brokers (NAICS 419). Real-time data tables Next release Products Contact information Industry Intelligence Editor's Note: This press release omits select charts and/or marketing language for editorial clarity. Click here to view the full report.
Sales in the machinery, equipment and supplies subsector grew 5.6% to $18.9 billion in May. All industry groups reported a monthly increase, leading to the subsector's largest monthly increase since June 2020. The construction, forestry, mining, and industrial machinery, equipment and supplies industry group led the growth, up 6.9% to $6.2 billion in May. As reported in a release regarding April 2023, there has been an increase of investment in building construction, leading to higher demand for equipment. The computer and communications equipment and supplies (+6.3% to $5.1 billion) and other machinery, equipment and supplies (+4.9% to $4.8 billion) industry groups also influenced positive movement in May. Residential construction and commercial projects surged in May, which is reflective of the rise of the machinery and equipment subsector.
Sales increased in the majority of the provinces in May 2023, led by higher sales in Ontario, followed by Alberta.
Wholesale inventories (excluding petroleum, petroleum products, and other hydrocarbons and excluding oilseed and grain) fell 0.2% to $129.0 billion in May, the second decline of 2023.
All data in this release are seasonally adjusted and expressed in current dollars unless otherwise noted.
Real-time data tables 20-10-0019-01, 20-10-0020-01 and 20-10-0005-01 will be updated soon.
Wholesale trade data for June will be released on August 16.
The product "Monthly Wholesale Trade Survey: Interactive Tool" (Catalogue number71-607-X) is available online. This product is based on the data published in the tables of the Monthly Wholesale Trade Survey: 20-10-0074-01, 20-10-0076-01 and 20-10-0003-01.
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