By Paul Vieira
OTTAWA – Wholesale transactions in Canada fell in July for a second consecutive month, posting the largest drop in over a year as lumber prices fell.
Wholesale sales fell 2.1% on a seasonally adjusted basis in July to C $ 70.57 billion, the equivalent of $ 55.87 billion, Statistics Canada said Thursday. Market expectations were for a drop of 2%, according to economists at Desjardins Securities.
In volume, or in price-adjusted terms, sales fell 2.4%.
Wholesalers – the largest component of the service sector in Canada – connect the farmers or manufacturers who produce goods with the businesses and public institutions that use them. They also import goods from other countries and redistribute them within Canada.
Sales of building materials and supplies, which include forest products such as lumber, fell 12.4% in the month to C $ 11.03 billion. Year on year, sales in this sector increased by 22.4%. According to Statistics Canada, excluding this component, wholesale transactions rose 0.1% in July.
Meanwhile, wholesalers’ inventories rose 0.6% to C $ 95.7 billion, which the data agency said was an all-time high.
Write to Paul Vieira at [email protected]