Wholesale trade expands at faster pace

Statistics Canada says wholesale sales rose at the fastest pace in almost a year in April, driven by increasing demand for agricultural supplies.

The agency says wholesale sales rose 1.5 per cent in April to $49.3 billion, mainly due to a 48.5 per cent increase in sales of agricultural supplies. Excluding that industry, overall sales were unchanged from March.

Wholesales sales are sales of goods and services between businesses and institutions, before they've reached the retail or consumer level. They are considered a leading indicator of consumer demand down the line.

Next to agriculture, the second biggest advance was a 1.1 per cent rise in the machinery, equipment and supplies subsector, which partly offset a March decline.

Sales in the building material and supplies subsector rose 0.5 per cent and the motor vehicle and parts subsector gained 0.2 per cent.

The largest sales decrease in dollar terms came in the personal and household goods subsector, which dropped 2.2 per cent on lower sales in the pharmaceuticals and pharmacy supplies industry.

In April, seven provinces recorded growth in wholesale sales, including the four western provinces.

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Wholesale trade expands at faster pace