Canada's wholesale trade rose for the first time in nine months in June, climbing to $40.4 billion.

Statistics Canada released figures Thursday indicating companies sold 0.6 per cent more to retailers in the sixth month of the year compared with May's figures when measured in current dollar terms.

"Wholesale sales rose for the first time in nine months in June, mainly due to increases in the automotive products and food, beverages and tobacco products sectors," said the agency.

Better still, Canada's wholesale trade rose by one per cent in volume terms — which corrects for higher-selling prices — in June, the third consecutive month in which companies sold more physical product.

Statistics Canada said cars and automotive parts sold well in the month, up 3.3 per cent, reaching $5.8 billion in June. That result was the fifth straight increase for this beleaguered industry but remained below the sector's sales peak back in June 2008.

Once cars were subtracted, Canada's wholesale trade numbers edged up 0.1 per cent to $34.6 billion.

In addition, wholesalers' inventories dropped in the month, down more than $600 million in June versus May. That was the fourth month in a row in which goods in the warehouse decreased.

Combined with higher sales, the wholesale inventory-to-sales ratio — an indicator of slack demand — fell to 1.4 in June, down from 1.42 in May.

On the downside, Statistics Canada noted that the "other" category, which included agricultural fertilizer, slid for the fifth straight month, hitting $4.3 billion.

Corrections and Clarifications

  • Canada's wholesale trade rose by 0.6% in June, not by six per cent as reported in an earlier headline. Aug. 20, 2009 | 11:39 a.m. ET