Wholesale sales rose three per cent in January to $44.4 billion, their strongest increase in three years.

Two shoppers browse a Wal-Mart aisle. Wholesale sales rose three per cent in January, Statistics Canada said Wednesday (Ric Francis/Associated Press)

Even before the January spike, sales had been trending higher since the middle of 2009, Statistics Canada said Wednesday. In volume terms, sales were up 2.9 per cent.

All sectors were in positive territory, but four sectors accounted for 80 per cent of the growth: automotive products, building materials, machinery and electronic equipment, and "other products."

Sales in the automotive products sector grew 4.8 per cent to $7.8 billion in January, a fourth consecutive monthly increase. Within the sector, a 6.1 per cent gain in sales of vehicles themselves explains the gain, as parts and accessories sales dipped 0.3 per cent.

Wholesale sales of building materials reached $6 billion in January, with the sector's three trade groups all posting increases.

Higher sales in the building materials sector coincided with a 5.8 per cent increase in housing starts. According to the Canada Mortgage and Housing Corporation, housing starts in January were up 5.8 per cent from December.

The machinery and electronic equipment sector posted a 2.6 per cent increase, reflecting sharply higher sales in the machinery and equipment group.

A surge in sales of agricultural chemicals helped push sales in the "other products" sector up 4.1 per cent.

Most provinces post gains

Except for Nova Scotia, all provinces posted higher wholesale sales in January. Saskatchewan led the way with an 18.4 per cent gain.

Wholesale trade inventories declined 1.1 per cent in January to $52.8 billion, their lowest level since December 2006. It was their 11th straight monthly decline.

Overall, 11 of the 15 wholesale trade groups reported reduced inventories.