February 2024 saw Canada’s wholesale trade landscape experiencing a largely stable month, with sales remaining essentially unchanged at $82.2 billion.
The machinery, equipment, and supplies subsector emerged as a frontrunner, witnessing a growth of 1.1%, reaching $17.6 billion. This marked its second consecutive monthly increase, bouncing back from a four-month decline period. However, the subsector’s growth remained 4.3% lower than the figures from a year ago.
The motor vehicle and motor vehicle parts and accessories subsector also showed signs of recovery, with a 0.8% uptick to $14.3 billion. This growth, though promising, still lags by 3.2% when compared to the peak observed in November 2023. Retooling challenges continue to hinder domestic manufacturing and exports in this sector.
Conversely, the food, beverage, and tobacco subsector witnessed a decline of 1.3%, settling at $14.6 billion, marking its second consecutive monthly decrease. Similarly, the personal and household goods subsector saw a decrease of 1.4%, standing at $11.9 billion, snapping a four-month growth streak.
Geographically, Quebec led the charge with a 1.5% increase in wholesale sales, totaling $14.9 billion for February. This growth was primarily driven by the machinery, equipment, and supplies subsector, which saw a 4.5% rise, reaching $2.5 billion. The building material and supplies subsector also contributed positively, registering a growth of 4.6% to $2.3 billion.
British Columbia followed suit with a 2.4% growth, amounting to $7.9 billion. The food, beverage, and tobacco subsector were the primary growth drivers, surging by 5.6% to $1.7 billion.
On the flip side, Saskatchewan faced a significant setback, with wholesale sales plummeting by 8.1% to $3.5 billion. The miscellaneous subsector was particularly hard hit, witnessing an 18.8% decline to $1.4 billion.
Inventories experienced a downturn in February, contracting by 1.0% to $126.9 billion, marking the lowest level since December 2022. Notably, the food, beverage, and tobacco merchant wholesalers recorded the steepest decline in inventories, dropping by 6.4% to $13.6 billion. The machinery, equipment, and supplies merchant wholesalers followed suit with a 1.3% dip to $38.6 billion.
The inventory-to-sales ratio, a key metric indicating the time required to exhaust inventories at current sales levels, decreased from 1.56 in January to 1.54 in February. This slight decline suggests an improved inventory turnover rate, albeit within a generally stable sales environment.
As the industry navigates through various economic dynamics, staying agile and responsive to changing market conditions will remain crucial for sustained growth and stability.