After two months of increases, wholesale sales slid downward in June by 2.8%, Statistics Canada reported today (August 20).
The drop was more than expected, said CIBC economist Emanuella Enenajor.
“The pull-back in sales comes on the heels of a sharp increase seen just a month before, with a particularly acute decline in the agricultural supplies sub-sector that was the source of strength in the prior month’s reading,” Enenajor wrote.
While the massive flood that hit southern Alberta in June was expected to have an impact on sales, the effect — a decline of 1.5% — was more modest than expected.
Instead, Ontario saw the sharpest decrease, at 4%.
Among the provinces that saw a decline in wholesale sales, B.C. had the most modest drop, at 0.5%.
Along with other indicators, the disappointing wholesale numbers will likely contribute to a 0.5 to 0.6% decline in June’s GDP, said BMO economist Douglas Porter.
