OTTAWA: Canadian wholesale trade fell 1.8pc in May after five months of gains, Statistics Canada said on Monday, as sales in the motor vehicle and auto parts industries dropped.
Analysts in a Reuters poll had predicted an increase of 0.5pc in May from April.
The national statistics agency said wholesale inventories increased for a ninth consecutive month, jumping 1.1pc, while sales volume decreased by 1.9pc.
"Wholesale trade turned out to be a wholesale miss in May," said Royce Mendes of CIBC Capital Markets, noting the Canadian dollar was trading weaker following the news.
The loonie hit a nine-day low, falling to 1.3102 to the U.S greenback or 76.32 US cents.
Statistics Canada said sales in the motor vehicle and parts subsector declined by 4.3pc in May, the industry's largest drop since February 2018.
Meanwhile, lower imports of passenger cars and light trucks in May coincided with declines in motor vehicle sales, Statistics Canada said, with sales dropping 5.2pc.
Declines were also seen in the miscellaneous subsector, where sales decreased 4.2pc.
The subsector includes goods like recyclable materials, agricultural supplies, non-agricultural chemicals, paper, paper products and disposable plastic products.
The drop in miscellaneous sales, Statscan said, was led by an 11.1pc decline in the agricultural supplies industry, the largest drop seen since June 2018.
Sales were lower in six of the seven subsectors and in seven of Canada's 10 provinces, the agency said.
Alberta led the provincial decline, with sales falling 8.7pc as a result of a decrease in sales of miscellaneous goods as well as machinery, equipment and supplies.
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