Canada’s wholesale trade sector experienced notable growth in April 2024, with sales, excluding petroleum, petroleum products, and other hydrocarbons as well as oilseed and grain, reaching $83.3 billion. This marks a 2.4% increase from the previous month, according to Statistics Canada’s latest data. Year-over-year, this figure reflects a 3.4% rise compared to April 2023, showcasing the sector’s robust recovery and expansion.
Leading this growth were significant gains in the motor vehicle and motor vehicle parts and accessories subsector, which rebounded with a 10.2% rise to $14.6 billion following a downturn in March. This subsector’s growth was spearheaded by a 12.4% increase in the motor vehicles industry group, reaching $11.8 billion. Additionally, the miscellaneous subsector bolstered the overall sales with a 5.1% increase to $10.6 billion, driven by the agriculture supplies industry group’s 6.9% growth to $3.6 billion, reversing two months of declines.
Ontario led the provincial sales growth, with a 2.1% increase to $43.0 billion, following three months of decline. The motor vehicle and motor vehicle parts and accessories subsector was pivotal, soaring by 11.7% to $10.1 billion. Alberta followed with a 6.2% rise to $9.4 billion, recovering from a March decline. In Alberta, six of the seven subsectors reported gains, notably the machinery, equipment and supplies subsector (+4.6% to $3.2 billion) and the motor vehicle and motor vehicle parts and accessories subsector (+17.1% to $948.4 million).
Wholesale inventories fell by 0.5% in April to $126.3 billion, following a 0.4% increase in March. Declines were seen in four of the seven subsectors, particularly in the building material and supplies subsector, which dropped 2.8% to $21.6 billion, and the motor vehicle and motor vehicle parts and accessories subsector, which decreased by 3.4% to $16.1 billion. Despite this overall decrease, the food, beverage and tobacco subsector saw a 3.5% rise to $14.1 billion, and the personal and household goods subsector increased by 2.1% to $21.0 billion, mitigating the total inventory decline.
The inventory-to-sales ratio, an indicator of the time required to deplete current inventories at the present sales pace, fell from 1.56 in March to 1.52 in April. This decline suggests a more efficient turnover of inventory in response to the uptick in sales, indicating healthy demand and effective inventory management within the wholesale sector.
The notable contributions from the motor vehicle and miscellaneous subsectors, coupled with robust provincial performances from Ontario and Alberta, paint an optimistic picture for the industry’s trajectory. However, the decline in inventories and the accompanying reduction in the inventory-to-sales ratio suggest a need for continued monitoring to ensure sustained growth and balance in the sector’s supply chain dynamics.