OTTAWA (Reuters) - The value of Canadian wholesale trade jumped by more than expected in October on increased purchases of machinery and equipment, as well as household goods, data from Statistics Canada showed on Wednesday.
The 1.5 percent increase topped economists’ forecasts for a gain of 0.5 percent and offset September’s 1.1 percent decline. Removing the effects of price changes, volumes were up 1.2 percent in October.
The report boded well for the economy at the start of the fourth quarter. Still, Canada is expected see slower economic growth in the second half of the year after setting a blistering pace in the first half.
Wholesale trade rose in six out of seven sectors, accounting for 81 percent of total sales and led by a 5.2 percent increase in machinery, equipment and supplies.
The personal and household goods sector was up 3.4 percent on higher sales in the textile, clothing and footwear category, which was up for the fourth time in five months.
The motor vehicle and parts sector fell 2.3 percent, the only group to post a decline as vehicle sales fell for the first time in four months. Canadian vehicle sales have been robust this year and could hit 2 million for the first time.
Reporting by Leah Schnurr; Editing by Nick Zieminski