Canada Wholesale Trade Surprises in July With 1.5% Rise
By Paul Vieira
OTTAWA--Wholesale transactions in Canada unexpectedly rose in July on demand for building materials and food products.
Wholesale transactions advanced 1.5% on a seasonally adjusted basis in July to 62.38 billion Canadian dollars ($50.84 billion), Statistics Canada said Thursday. Market expectations were for a 0.7% decline, according to economists at Royal Bank of Canada.
In volume terms, May wholesale transactions increased by a healthier 2.1% from the previous month.
On a 12-month basis, wholesale trade in Canada rose 10%.
Wholesale trade is the largest component of Canada's services sector--which in turn accounts for two-thirds of the country's economic output. Wholesalers tend to move merchandise in large quantities to institutional, industrial and retail clients. Markets tend to overlook the wholesale-trade data, even though it has a bigger weight in gross domestic product than the more closely watched retail sales.
The wholesale report offered positive news after trade and factory sector data for July indicated the Canadian economy has hit a rough patch following 12 months of strong activity.
July retail sales are scheduled for release Friday.
Write to Paul Vieira at Paul.email@example.com
(END) Dow Jones Newswires
September 21, 2017 09:18 ET (13:18 GMT)Copyright (c) 2017 Dow Jones & Company, Inc.