Decline in demand for household appliances and home entertainment equipment contributed to the weaker wholesale trade figures.
There’s another bit of data pointing towards a weakening Canadian economy.
According to Statistics Canada, Canadian wholesale trade fall 0.5% in December.
The fall was contrary to the expectations of analysts.
As noted by Reuters, “Analysts in a Reuters poll had forecast an increase of 0.4 per cent. StatsCan revised November’s month-on-month gain down to 0.3 per cent from an initial 0.7 per cent to incorporate corrected data from some respondents. Lower sales were recorded in five of the seven subsectors, representing 65 per cent of wholesale trade in December, while volumes declined 0.9 per cent.”
The data shows that there is “weakness in the agricultural supplies industry.”
There was also a fall of 3.3% in the “personal and household goods subsector.”
In 2017, Canadian wholesale trade rose – as it has for the past eight years. It remains to be seen whether that trend will continue, or whether the rising cost of household debt, an increasing tax burden, and slowing economic growth will push wholesale trade down further.