Current dollar wholesale sales rose 2.0% to $45.2 billion in June

Statscan - This represents the fifth increase in six months. After removing the effect of price changes, sales in constant dollars increased 1.0% during the month.

June's increase of 2.0% was largely a result of higher demand for automotive products. Sales excluding the automotive sector rose 0.4%.

Overall, six of the seven wholesale sectors reported higher sales in June. The only decline came in the "other products" sector, which had posted a substantial increase in May.

The trend for current dollar wholesale sales has been gradually rising over the past four months. This followed a period of little or no growth that began in mid-2007, which was largely the result of a slowdown in exports of motor vehicles and lumber.

Strong month for automotive sector

Following declines in five of the previous six months, sales in the automotive products sector increased 10.6% in June to $7.8 billion. This was the sector's largest monthly increase since August 2005.

Sales of motor vehicles were particularly strong, rising 11.9%, while demand for motor vehicle parts and accessories grew 6.0%. Nevertheless, sales of motor vehicles remained substantially below the peak reached in March 2007.

Ontario benefits from increase in automotive sales

The increase in the automotive sector gave a boost to Ontario, where sales rose 4.2% in June to $22.6 billion. This was the fourth consecutive rise in monthly sales in the province, which accounts for around three-quarters of all sales in the automotive sector.

The other notable gain came in Saskatchewan, where sales also increased (+3.8%) for a fourth consecutive month. Higher demand for farm machinery and equipment was behind much of the rise.

Alberta posted the only significant drop (-3.4%) in June, the province's first decline this year. Lower sales in the farm product, automotive and "other products" sectors were the main contributors.

Widespread increase in inventories

All trade groups apart from building supplies reported higher inventory levels in June. Wholesale inventories rose 1.2% to $55.5 billion, the fourth consecutive monthly increase and the largest rise since January 2007.

Nevertheless, with sales rising at a faster pace in June, the inventory-to-sales ratio declined for a third consecutive month, from 1.24 in May to 1.23 in June. This was its lowest level since March 2007.

Wholesale merchants' inventories and inventory-to-sales ratio
	June 2007	March 2008r	April 2008r	May 2008r	June 2008p	May to June 2008	June 2007 to June 2008	May 2008r	June 2008p
	Wholesale inventories							Inventory-to-sales ratio
	Seasonally adjusted
	$ millions					% change
Inventories	54,011	54,274	54,491	54,872	55,512	1.2	2.8	1.24	1.23
Farm products	200	166	180	174	184	5.3	-8.1	0.38	0.39
Food products	4,177	4,360	4,327	4,370	4,411	0.9	5.6	0.63	0.62
Alcohol and tobacco	298	355	348	340	356	4.6	19.7	0.50	0.50
Apparel	1,685	1,764	1,748	1,768	1,808	2.3	7.3	2.21	2.26
Household and personal products	3,904	4,089	4,056	4,110	4,166	1.4	6.7	1.47	1.46
Pharmaceuticals	3,496	3,556	3,800	3,802	3,877	2.0	10.9	1.20	1.19
Motor vehicles	4,668	4,345	4,319	4,239	4,319	1.9	-7.5	0.76	0.69
Motor vehicle parts and accessories	3,320	3,264	3,249	3,283	3,344	1.9	0.7	2.16	2.07
Building supplies	5,888	5,912	5,947	5,986	5,957	-0.5	1.2	1.59	1.58
Metal products	3,049	2,787	2,797	2,815	2,897	2.9	-5.0	1.83	1.77
Lumber and millwork	1,251	1,067	1,108	1,085	1,095	0.9	-12.5	1.14	1.18
Machinery and equipment	11,699	11,575	11,458	11,551	11,586	0.3	-1.0	2.39	2.36
Computer and other electronic equipment	1,718	1,647	1,705	1,712	1,730	1.1	0.7	0.60	0.62
Office and professional equipment	2,609	2,706	2,662	2,729	2,805	2.8	7.5	1.35	1.39
Other products	6,051	6,682	6,786	6,908	6,976	1.0	15.3	1.08	1.15
r revised p preliminary Note: Figures may not add up to totals due to rounding.

Wholesale merchants' sales
	June 2007	March 2008r	April 2008r	May 2008r	June 2008p	May to June 2008	June 2007 to June 2008
	Seasonally adjusted
	$ millions					% change
Total, wholesale sales	43,019	42,889	43,588	44,251	45,151	2.0	5.0
Farm products	482	454	444	462	465	0.5	-3.6
Food, beverages and tobacco products	7,427	7,476	7,553	7,603	7,811	2.7	5.2
Food products	6,787	6,797	6,891	6,920	7,104	2.7	4.7
Alcohol and tobacco	640	679	662	683	707	3.4	10.5
Personal and household goods	6,347	6,463	6,684	6,779	6,893	1.7	8.6
Apparel	771	747	790	802	800	-0.2	3.7
Household and personal products	2,730	2,717	2,722	2,799	2,848	1.7	4.3
Pharmaceuticals	2,846	2,999	3,172	3,178	3,245	2.1	14.0
Automotive products	7,875	7,167	7,158	7,080	7,832	10.6	-0.5
Motor vehicles	6,327	5,623	5,605	5,558	6,219	11.9	-1.7
Motor vehicle parts and accessories	1,548	1,544	1,553	1,522	1,613	6.0	4.2
Building materials	6,377	6,121	6,215	6,244	6,335	1.5	-0.7
Building supplies	3,774	3,742	3,735	3,757	3,769	0.3	-0.1
Metal products	1,467	1,483	1,558	1,538	1,636	6.4	11.5
Lumber and millwork	1,136	896	922	950	930	-2.1	-18.1
Machinery and electronic equipment	9,245	9,477	9,678	9,690	9,728	0.4	5.2
Machinery and equipment	4,533	4,808	4,813	4,834	4,909	1.6	8.3
Computer and other electronic equipment	2,677	2,637	2,818	2,831	2,808	-0.8	4.9
Office and professional equipment	2,035	2,032	2,047	2,026	2,012	-0.7	-1.1
Other products	5,265	5,731	5,856	6,392	6,086	-4.8	15.6
Total, excluding automobiles	35,144	35,722	36,430	37,171	37,319	0.4	6.2
Sales, province and territory
Newfoundland and Labrador	259	261	259	266	269	1.2	3.9
Prince Edward Island	40	40	40	42	42	0.7	6.2
Nova Scotia	555	577	591	596	597	0.2	7.7
New Brunswick	421	425	429	439	439	-0.1	4.1
Quebec	8,029	8,069	8,094	8,196	8,284	1.1	3.2
Ontario	21,796	21,059	21,480	21,679	22,591	4.2	3.6
Manitoba	1,026	1,062	1,075	1,089	1,096	0.7	6.8
Saskatchewan	1,142	1,593	1,605	1,691	1,755	3.8	53.7
Alberta	5,127	5,440	5,470	5,763	5,567	-3.4	8.6
British Columbia	4,554	4,293	4,450	4,414	4,430	0.4	-2.7
Yukon	10	12	14	12	13	9.2	31.0
Northwest Territories	57	57	76	59	58	-1.7	3.2
Nunavut	3	2	3	4	8	88.5	185.7
r revised p preliminary Note: Figures may not add up to totals due to rounding.

Note to readers

Constant dollar wholesale sales are calculated by deflating current dollar values using import and industry product price indexes. Since many of the goods sold by wholesalers are imported, fluctuations in the value of the Canadian dollar can lead to differences between the levels and growth rates when compared to similar estimates presented in current dollars.