Canada wholesale sales rise in October, stronger than market expectations

Wholesale sales rose during the month of October, stronger than what markets had initially anticipated. The gain was majorly led by increases in automobiles and wholesale inventories.

Canadian wholesale sales rose 1.1 percent for October, which was stronger than the expected increase of 0.4 percent, but September’s data was revised to show a decline of 1.5 percent from the original estimate of 1.2 percent, data released by Statistics Canada showed Tuesday.

Also, Sales increased in five of the seven sub-sectors and there was a 3.9 percent annual increase with a 3.6 percent increase in real terms. Motor vehicle sales and parts sales rose 1.8 percent on the month to give a strong 16.6 percent gain, while a 1.7 percent increase in food and drink sales produced a 4.9 percent annual gain.

There was also a strong monthly increase in building materials and supplies, while machinery and equipment supplies rose 1.1 percent, which cut the annual decline to 2.4 percent. Wholesale inventories increased 0.8 percent for the month, the third successive increase, with inventories in the personal and household goods subsector at a record high.

Meanwhile, USD/CAD traded at 1.3363, down -0.02 percent, while at 5:00GMT, the FxWirePro's Hourly CAD Strength Index remained neutral at 70.94 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex