Ottawa, Ontario, October 19, 2006--Canadian wholesale trade rose by 0.5 percent in August from July as general gains more than made up for sinking sales in the crucial automotive sector, Statistics Canada said on Thursday.
The increase comfortably exceeded analysts' expectations of a 0.2 percent rise. Statscan revised July's month-on-month growth to 2.2 percent from an initial 2.1 percent.
"The sales trend for wholesale has generally been rising since September 2003, in line with the growth in the Canadian economy," Statscan said in its daily bulletin.
The automotive sector -- which accounts for about a fifth of all wholesale sales -- dropped 7.4 percent in August on the back of a 9.3 percent decline in sales. The sector had grown by 8.4 percent in July from June.
"Wholesalers of motor vehicle could be facing a difficult period over the coming months as a weakening U.S. housing market erodes consumer confidence south of the border. The U.S. is a key market for Canadian auto wholesalers," Statscan said.
