By Akhil Shah

OTTAWA (MNI) Wholesale sales increased 0.8% to C$48.2 billion in
July after a flat reading in June, Statistics Canada reported Tuesday.

Of the seven sub sectors, five reported gains in July accounting
for over 85% increase in total sales. The majority of the growth came
from the machinery, equipment and supplies, the personal and household
goods and the motor vehicle and parts sub sectors. In volume terms sales
increased 1.5% in July.

The machinery, equipment and supplies sub sector recorded the
highest increase in dollar terms in July, with sales climbing 2.1%,
adding to the upward trend that began in the second quarter of 2010.

The wholesalers of construction, forestry, mining and industrial
machinery, equipment and supplies were the largest contributors to the
advance. The increase also reflected higher business investment in plant
and equipment, which has been on the rise for six straight quarters.

Sales in the personal and household goods sub sector increased 2.9%
in July after a decline in June, registering the highest
month-over-month growth since April 2008.

The motor vehicle and parts sub sector posted a 2.6% increase in
sales in July, after three consecutive months of declines. Higher
production and imports of automotive products led the recovery after the
sub sector had been affected by supply disruptions following the
earthquake and tsunami in Japan.

Excluding motor vehicle and parts, sales increased 0.4% in July. On
an annual basis sales surged 9.0% in July.

A 5.1% decline in the miscellaneous sub sector held back the
increase in July as lower sales were reported in agricultural supplies
(-18.5%).

Wholesale inventories increased for the seventh straight month,
rising 0.3% to C$56.5 billion in July. Higher inventories were recorded
in 11 of the 25 wholesale industries, the agency reported.

The largest gains in dollar terms were reported in wholesalers of
construction, forestry, mining and industrial machinery, equipment and
supplies industry. The new motor vehicle parts and accessories industry
also contributed to the gains.

The inventory-to-sales ratio; a measure of the time in months
required to exhaust inventories if sales were to remain at their current
level, edged down to 1.17 in July from 1.18 in June.

–Akhil Shah is a reporter with Need To Know News In Ottawa

** Market News International Ottawa **

[TOPICS: M$C$$$,MAUDS$]