The wholesale sector entered the second wave of the Covid-19 outbreak in better shape than before the pandemic first hit, according to new data from Statistics Canada.
The national statistical agency reported that wholesale sales increased by 1% in October to $66.7 billion, which marked the sixth consecutive increase.
“Gains in the machinery, equipment and supplies; motor vehicles and motor vehicle parts and accessories; and building material and supplies sub-sectors all contributed to the growth, which was partially offset by declines in the food, beverage and tobacco, and personal and household goods sub-sectors,” StatsCan said in its report.
The widespread strength translated into sales that were up 3.3% from pre-pandemic levels in October, it said.
“By many measures, the wholesale sector was better off in October than it was in February, before the onset of Covid-19 restrictions,” StatsCan said.
For the second straight month, every sector (except for motor vehicles and vehicle parts) recorded higher sales in October than in February.
The strongest sector was building materials, which had sales in October that were 9.9% higher than the February total.
On a year-over-year basis, sales were up 5.2% in October, StatsCan said, noting that sales increased for every sector compared with October 2019.
The strength in wholesale sales may reflect the fact that the economic damage from the pandemic is being felt most acutely in services, StatsCan said, “as spending on services remains far below pre-pandemic levels.”
Despite the rosy results, the agency cautioned that “October may represent a short-term peak in the sector, as shutdowns occurred in many parts of Canada in November and December to combat the pandemic.”
Alongside the strong sales, wholesale inventories declined by 0.6% to $90.1 billion in October, StatsCan reported.
This decline in inventories followed two consecutive months of inventory increases, it said.
The inventory-to-sales ratio also decreased in October.