Canada’s Wholesale Sales Decrease by 0.3%

Canada’s Wholesale Sales Decrease by 0.3%

Wholesale sales in Canada for February 2025 saw a decrease of 0.3% compared to January 2025, according to the latest data released by Statistics Canada. This decline brings the total value of wholesale sales to 85.65 billion Canadian dollars, marking a slowdown after a more significant increase of 1.4% in January.

The primary contributor to the decrease was a 3.1% drop in the motor vehicles and parts sector, which significantly impacted overall wholesale sales. This decline offset gains seen in other sectors, such as machinery, equipment, and supplies, which grew by 7.1%.

In terms of volume, wholesale sales saw a slight decrease of 0.1%, indicating that the quantity of goods sold also faced a mild contraction. When compared to the same month last year, wholesale sales in Canada showed a 3.3% increase, while the volume of goods sold was up by 1.2%.

Despite the overall decrease in sales, nine out of ten provinces saw growth, with the decline being more pronounced in certain regions. However, the reduction in overall wholesale sales is a signal of potential challenges within the Canadian economy, particularly in the automotive sector, which has been facing various hurdles in recent months.

The data highlights a mixed economic environment, where growth in some sectors is being counterbalanced by declines in others. Analysts believe that this dip in wholesale sales could have implications for broader economic activity and may influence decisions regarding future monetary policy.