Canadian wholesale sales rise 0.7%, led by computer equipment and vehicles

Canadian wholesale sales rose 0.7 percent to C$92.5 billion in September, led by machinery, equipment and motor vehicles. The November 13 release from Statistics Canada showed that five of the seven measured subsectors recorded increases. Yet the higher dollar total did not represent an increase in the overall volume sold: after price changes were removed, sales fell 0.2 percent.

The headline series excludes petroleum, petroleum products and other hydrocarbons, as well as oilseed and grain. It is therefore not a total for every wholesale transaction in the economy. Within its coverage, sales were 7.8 percent above September 2025. Separating that annual comparison from the smaller monthly increase is important when assessing whether demand is improving now or simply remains higher than a year earlier.

New technology releases support equipment sales

The machinery, equipment and supplies subsector gained 3.6 percent to C$20.7 billion. Computer and communications equipment sales rose 10.0 percent to C$6.5 billion, their strongest increase since March, reflecting new product releases. Motor vehicles and parts added a further source of growth, with subsector sales rising 2.4 percent to C$15.5 billion. Vehicle sales themselves increased 2.7 percent to C$12.5 billion, their seventh monthly gain since the start of the year.

Building materials moved against the wider increase. Sales in that subsector fell 2.9 percent to C$13.6 billion after eight consecutive monthly gains. Lumber, millwork, hardware and other building supplies accounted for much of the decline, falling 6.6 percent to C$6.2 billion. A stronger technology or vehicle result should consequently not be read as evidence that construction-related supply demand is equally strong.

Provincial gains coexist with a small volume decline

Seven provinces recorded higher wholesale sales. Ontario led the dollar increase, rising 0.9 percent to C$48.4 billion, while Saskatchewan's sales rose 9.8 percent to C$4.2 billion. Inventories edged up 0.2 percent to C$141.9 billion. The inventory-to-sales ratio slipped from 1.54 to 1.53 months, measuring how long stocks would last if sales stayed at their current pace. Over the third quarter, wholesale sales rose 1.5 percent to C$277.5 billion in current dollars but fell 0.2 percent in volume terms. The quarterly and monthly results both show why higher receipts alone cannot establish stronger real activity.