Wholesale trade fell 1.4 per cent to $41 billion in August, following a 2.6 per cent increase in July, Statistics Canada said Tuesday.

Weaker sales in the automotive products, machinery and electronic equipment, and building materials sectors were the major factors contributing to the decline, the data agency said.

Following a 17.8 per cent increase in July, sales of motor vehicles fell 4.7 per cent in August, the first decline in seven months.

Regionally, the weakness was widespread, with most provinces posting declines.

After posting increases in July, wholesalers in Ontario and Quebec both reported lower sales in August. Ontario, which accounts for about half of Canada's total wholesale sales, saw a decrease of 2.2 per cent. Quebec sales declined by one per cent.

In the West, the declines were closer to the national average. Wholesale sales fell by 1.4 per cent in Alberta and 1.6 per cent in British Columbia, primarily as a result of lower sales in the machinery and electronic equipment sector.

Provincially, Saskatchewan registered a 6.8 per cent increase in August, the largest in the country. That followed a 4.8 per cent decline in July.

"The overall story is one in which the Canadian wholesale sector has one toe in the healthy domestic side of the economy, and one toe in the soft foreign-facing side," Eric Lascelles, Chief Economics Strategist with TD Securities, said in a commentary.

He predicted the Canadian economy is now on track for a 0.2 per cent decline for August compared with the month earlier, although that depends on how well retail sales did.

Economic data out of the U.S. sent mixed signals Tuesday.

The Labour Department said wholesale prices fell in September, pulled down by lower energy prices.

At the same time, the Commerce Department said home building rose 0.5 per cent in September but applications for building permits fell by 1.2 per cent, the largest amount in five months.