BMO Previews Next Week's CPI in Canada

Canada's Wholesale Trade Rise a Tad Better Than Expected in March, says StatsCan

Canadian wholesale sales, excluding oil, oil products, and other hydrocarbons and excluding oilseed and grain, rose 1.9% month over month to $89.0 billion in March, said the country's statistical agency on Thursday.March's rise was slightly better than the 1.3% month-over-month consensus figure provided by Scotiabank.Sales increased in five of the seven subsectors, representing 79.6% of total wholesale sales, noted Statistics Canada in a statement. The largest increase came from the machinery, equipment and supplies subsector.Wholesale sales were 3.3% higher in March than in the same month one year earlier.In volume terms, wholesale sales excluding oil, oil products, and other hydrocarbons and excluding oilseed and grain increased 1.7% month over month in March.Wholesale inventories, excluding oil, oil products, and other hydrocarbons and excluding oilseed and grain, increased by 0.3% month over month to $137.2 billion in March, pointed out StatsCan.Inventories rose in three of the seven subsectors in March, with the largest increases occurring in the machinery, equipment and supplies subsector (2.0% to $41.4 billion) and the food, beverage and tobacco subsector (0.5% to $15.6 billion).The inventory-to-sales ratio decreased from 1.57 in February to 1.54 in March. This ratio measures the number of months required to exhaust inventories if sales remain at their current levels.

Brief: Canada's Wholesale Trade Up 1.9% M/M in March; Scotiabank Says Consensus Saw 1.3% M/M Gain

BMO on The Day Ahead in Canada

Canada will release March wholesale trade and new vehicle sales figures at 8:30 a.m. ET on Thursday, with the former expected to rise 1.5% month over month while the latter could decline 8.0% yeat over year, said Bank of Montreal (BMO).Released earlier Thursday, Canada's existing home sales rose 0.7% month over month in April, the first advance in six months, though still down 4% in the past year and 10% below the decade norm for the month, noted the bank after data from the Canadian Real Estate Association (CREA) released.New listings outpaced sales, lowering the sales/listings ratio to 45.6%, on the edge of sellers' market territory.Consequently, benchmark prices slipped a further 0.1% in the month and are down 4.2% year over year. Southwestern Ontario and parts of British Columbia remain the national weak spots, though Alberta is also slipping.These regional markets are likely to remain soft for a while and more so if the Bank of Canada pulls the tightening trigger, added BMO.