StatsCan Reports Automotive Sector Driving November Wholesale Gains

Gains in the automotive products sector in Ontario were the main catalyst for a 3.5% jump in wholesale sales in the province in November, according to Statistics Canada.

Some $21.7 billion in sales were recorded, making it the most robust month since September 2008.

Nationally, wholesale numbers gained 2.5% in November to $42.4 billion, the fifth increase in six months. In volume terms, wholesale sales were up 2.1%.

During that period, Canadian wholesalers regained one-third of losses incurred since the last peak in July 2008.

The automotive products sector contributed the most to the rise in November, followed by the food, beverages, and tobacco products sector.

Sales in the automotive products sector rose 7.8% in November to $7.3 billion, the eighth increase since the beginning of 2009.

The StatsCan report said it benefited from strong sales in the motor vehicles trade group, reflecting the strength of Canadian imports.

According to the latest Canadian international merchandise trade release, Canadian imports of automotive products rose 9.4% in November, mainly due to increased imports of trucks and other motor vehicles.

The food, beverages, and tobacco products sector, at 2.5%, also contributed to the growth in wholesale sales.

Except for Nova Scotia and New Brunswick, all Canadian provinces posted increased wholesale sales in November. However, Ontario and Quebec were the main contributors to this growth.