Wholesale trade, November 2022

Released: 2023-01-19

Higher wholesale sales in November

Wholesale sales rose 0.5% to $83.8 billion in November. Higher sales were posted in the motor vehicle and motor vehicle parts and accessories subsector and the machinery, equipment and supplies subsector, while sales in remaining subsectors decreased.

Constant dollar sales rose 0.1% in November.

Chart 1 
Wholesale sales increase in November

Motor vehicle and motor vehicle parts and accessories subsector drives the increase in November

Sales of motor vehicle and motor vehicle parts and accessories rose 10.1% to $13.8 billion in November, a new record high for this subsector. This increase was the largest monthly increase since July 2020. There was widespread growth in all industry groups, but the bulk of the increase and driver of the movement was the motor vehicle industry (+12.0% to $11.1 billion), based on an increase of electric vehicles sales.

The machinery, equipment and supplies subsector increased 2.0% to $17.9 million in November, on higher sales in the construction, forestry, mining, and industrial machinery, equipment and supplies industry (+7.6% to $6.4 billion), reporting its second consecutive increase. Sales in this industry were mainly completions of orders for year end, and the increase of November sales is attributable to a lack of transportation options.

Partially offsetting the strong increases in November was a decline of sales in the miscellaneous subsector (-5.1% to $12.2 billion). Four out of the five industry groups fell month over month, but the decrease was mainly led by agricultural supplies industry (-9.7% to $4.7 billion). This month's decline follows a strong October delivering orders.

Sales up in five provinces, led by Ontario and Quebec

Sales increased in five provinces in November, representing 83.2% of national sales. The increase was predominantly seen in Ontario and Quebec, while declines in Saskatchewan partially offset these gains.

In Ontario, sales rose 2.2% to $42.3 billion in November, with increased sales in two of the seven subsectors. The driving factor for sales in this province was a 13.8% (+$1.2 billion) increase in the motor vehicle and motor vehicle parts and accessories subsector. In addition, sales were up 2.5% to $8.8 billion in the machinery, equipment and supplies subsector. Excluding the motor vehicle and motor vehicle parts and accessories subsector, sales in Ontario would have decreased 0.7% in November.

Sales in Quebec continued to grow in November for a fourth consecutive month. Sales increased 1.5% to $15.7 billion and surpassed October's record high. Sales increased in six of the seven subsectors. The miscellaneous goods subsector led the provincial gain, with an increase of 7.9% to $1.9 billion, followed by the machinery, equipment and supplies subsector, up 4.6% to $2.6 billion.

In Saskatchewan sales fell 11.3% to $4.0 billion in November. While sales dropped in five of the seven subsectors, the miscellaneous goods subsector was down 17.1% to $2.3 billion and produced almost all (94%) of the provincial decline due to an 18.3% drop in the agricultural supplies component industry.

Inventory levels drop in November

Inventories fell 0.5% to $126.0 billion in November, the first drop since January 2022. Lower inventories were reported in four of the seven subsectors, led by the building material and supplies subsector and the personal and household goods subsector. Meanwhile, the remaining three subsectors saw growth in inventories, led by the machinery, equipment, and supplies subsector.

Inventories in the building material and supplies subsector fell 3.3% to $23.8 billion in November. This decrease was driven by all three industries: electrical, plumbing, heating and air-conditioning equipment and supplies (-4.2% to $6.9 billion), metal service centres (-3.5% to $6.6 billion), and lumber, millwork, hardware and other (-2.7% to $10.3 billion).

In the personal and household goods subsector, inventory levels fell 2.6% to $20.2 billion. Inventories of pharmaceuticals and pharmacy supplies decreased (-3.9% to $8.0 billion). Additionally, there was a drop in the textile, clothing, and footwear industry, down by 4.4% to $4.5 billion. Inventories in the home entertainment equipment and household appliance; personal goods; and toiletries, cosmetics and sundries industries also contributed to the decline in inventories for November.

Although there was an overall decrease in inventories in November, there was strong growth in the machinery, equipment, and supplies subsector, up 2.4% to $35.0 billion. Three of the four industries had an increase in inventories: farm, lawn, and garden (+5.9% to $6.9 billion), construction, forestry, mining, and industrial machinery, equipment and supplies (+1.7% to $16.1 billion), and other machinery (+2.7% to $7.5 billion).

The inventory-to-sales ratio decreased from 1.51 in October to 1.50 in November. This ratio is a measure of the time (in months) required to exhaust inventories if sales were to remain at their current levels.

Products

The product "Monthly Wholesale Trade Survey: Interactive Tool" (Catalogue number71-607-X) is available online. This product is based on the data published in the tables of the Monthly Wholesale Trade Survey: 20-10-0074-01, 20-10-0076-01 and 20-10-0003-01.

Contact information

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