OTTAWA – Wholesale sales rose two per cent to $45.2 billion in June, their fifth increase in six months.
After removing the effect of price changes, sales in constant dollars increased one per cent during the month.
June's increase was largely a result of higher demand for automotive products, where wholesale sales were up 0.4 per cent.
Six of the seven wholesale sectors reported higher sales in June, the only decline coming in the "other products" sector.
Sales in the automotive products sector increased 10.6 per cent in June to $7.8 billion, after declines in five of the previous six months.
Sales of motor vehicles were particularly strong, rising 11.9 per cent, while demand for motor vehicle parts and accessories grew six per cent.
The increase in the automotive sector gave a boost to Ontario, where wholesale sales rose 4.2 per cent in June to $22.6 billion.
The other notable gain came in Saskatchewan, where sales increased 3.8 per cent, largely on the strength of higher demand for farm machinery and equipment.
Alberta posted the only significant drop, falling 3.4 per cent in June.
All trade groups apart from building supplies reported higher inventory levels in June. Wholesale inventories rose 1.2 per cent to $55.5 billion.
But with sales rising at a faster pace in June, the inventory-to-sales ratio declined for a third straight month, from 1.24 in May to 1.23 in June, its lowest level since March 2007.
