January's decrease in sales was the second in three months. The declines followed an upward trend that began in May 2011. In volume terms, wholesale sales were down 1.0% in January.
Widespread decline in wholesale sales In January, six of the seven subsectors, representing almost all wholesale sales, posted decreases. The declines in the motor vehicles and parts subsector and the miscellaneous subsector accounted for more than three-quarters of the decrease at the national level. Sales in the motor vehicles and parts subsector fell 3.0% in January, as a result of lower sales in the motor vehicle industry and the new motor vehicle parts and accessories industry. The decline did not completely offset the advance observed in December. The subsector's sales have remained relatively stable since the end of 2010. Sales of miscellaneous wholesalers declined 2.5%, reflecting lower sales in the majority of its components. The leading contributor was the agricultural supplies industry, where sales were down 6.3%.
Weak global demand for fertilizers was reflected in prices. International merchandise trade data for January show a 32% decrease in the value of exports of fertilizers and fertilizer materials.
Sales of building materials and supplies fell for the second time in three months, down 0.7% in January. The decrease was mainly the result of lower sales in the lumber, millwork, hardware and other building supplies industry. Sales in the machinery, equipment and supplies subsector declined 0.4%, largely as a result of weak sales in the computer and communications equipment and supplies industry (-1.5%). Inventories increased 0.9% to $59.2 billion in January. It was the 12th month of inventory growth in Canada since the beginning of 2011. Inventories were up in 10 of the 25 industries in January. Wholesalers in the construction, forestry, mining and industrial machinery, equipment and supplies industry (+4.1%) and the personal goods industry (+14.4%) had the largest inventory increases in dollar terms. The inventory-to-sales ratio rose from 1.18 in December to 1.21 in January. The inventory-to-sales ratio is a measure of the time in months required to exhaust inventories if sales were to remain at their current level.