In December 2023, Canada’s wholesale trade sector experienced notable shifts, as reflected in the latest data released by [insert source]. Wholesale sales excluding petroleum, petroleum products, and other hydrocarbons, as well as oilseed and grain, witnessed a modest 0.3% increase, amounting to $82.9 billion.
The wholesale trade landscape in December was characterized by mixed performances across various subsectors. Notably, the personal and household goods subsector emerged as a frontrunner, marking its third consecutive month of growth with a substantial 4.1% increase. This surge was primarily propelled by the pharmaceuticals and pharmacy supplies industry, which recorded a remarkable 6.1% rise, reaching $7.0 billion in sales. Concurrently, the food, beverage, and tobacco subsector expanded by 1.9%, bolstered by increased sales in the food category, particularly driven by higher demand for fish and seafood products.
Conversely, the motor vehicle and motor vehicle parts and accessories subsector faced a downturn, experiencing a 2.2% decline in sales to $14.5 billion. This decline was primarily attributed to a 3.3% drop in sales within the motor vehicle industry group, following a temporary uptick in November.
Geographically, the provinces displayed diverse sales performances, with Ontario leading the pack. Ontario witnessed a commendable 1.2% increase in wholesale sales, reaching $42.9 billion, fueled by growth in various subsectors, notably the miscellaneous and personal and household goods categories. Quebec followed suit with a 1.5% rise in sales to $15.0 billion, primarily driven by robust performances in personal and household goods, as well as motor vehicle-related subsectors.
In contrast, British Columbia experienced a notable setback, with wholesale sales declining by 5.3% to $7.7 billion. This decline was pervasive across all subsectors, particularly evident in the building material and supplies category.
The inventory landscape witnessed a 1.2% increase, amounting to $129.5 billion in December. Noteworthy increments were observed in the machinery, equipment, and supplies subsector, which surged by 3.7% to $39.5 billion. Similarly, the motor vehicle and motor vehicle parts and accessories subsector saw a modest 1.2% uptick, reaching $17.6 billion. The inventory-to-sales ratio, a key metric indicating the time required to deplete inventories at current sales levels, rose marginally from 1.55 in November to 1.56 in December.
On an annual basis, wholesale sales excluding specified categories grew by 1.5% to $986.9 billion in 2023. Notably, the motor vehicle and motor vehicle parts and accessories subsector emerged as a standout performer, witnessing an impressive 11.7% surge in sales to $164.8 billion. This growth trajectory was primarily underpinned by robust performances in the electric vehicle segment, driven by increasing consumer preferences for sustainable alternatives amidst global climate change concerns. Additionally, alleviation of supply chain disruptions further catalyzed sales within the motor vehicle industry.
While certain subsectors witnessed robust growth, others faced challenges, reflecting the intricate interplay of market forces and external factors. As the sector navigates through evolving economic landscapes and consumer preferences, adaptability and strategic resilience remain paramount for stakeholders seeking sustained growth and competitiveness.