Canada's wholesale trade sector reported its strongest monthly increase in three years, rising 3% to $44.4 billion according to data released by Statistics Canada Wednesday.
While sales rose in all sectors analyzed by Statistics Canada, the automotive products, building materials, machinery and electronic equipment and other products accounted for 80% of the increase.
Sales in the automotive products sector grew 4.8% to $7.8 billion in January, a fourth consecutive increase. The increase was entirely attributable to the motor vehicles group.
Wholesale sales of building materials reached $6 billion in January with the largest gains recorded in the metal products group and the building supplies group.
Higher sales coincided with an increase in housing starts in Canada with the Canada Mortgage and Housing Corporation reporting a 5.8% increase in January.
B.C. wholesale sales rose 4% to $4.39 billion from $4.22 billion largely due to the automotive products and machinery and electronic equipment sectors.