Canada’s wholesale trade rises slightly in March, fueled by motor vehicles

Investing.com -- Canada’s wholesale trade posted a marginal gain in March, rising 0.2% to $86.5 billion, according to data published Thursday by Statistics Canada. The increase was led by strength in motor vehicles and miscellaneous products, though declines in other sectors kept overall growth modest.

The motor vehicle and parts subsector rose 4.5% to $15.1 billion, its highest monthly level since April 2024. Within that category, the motor vehicle industry group climbed 5.1% to $12.3 billion, as a greater number of vehicles were shipped to retailers.

Sales in the miscellaneous subsector rose 4.1% to $11.0 billion, supported by gains in mineral and agriculture supply segments. Overall, three of the seven subsectors recorded growth, representing 32% of national wholesale sales.

Offsetting those gains were declines in four subsectors, led by building materials and supplies, which fell 3.0% to $12.0 billion. Regionally, six provinces saw growth in wholesale activity, including Saskatchewan, which rose 10.2% to $4.0 billion—its third straight monthly increase. Ontario recorded a 0.4% decline to $44.6 billion, muting the national total.

Wholesale inventories declined 0.9% in March to $129.7 billion, with five subsectors showing drawdowns. Inventories in personal and household goods slipped the most, down 1.9% to $20.8 billion.

For the first quarter of 2025, wholesale sales rose 2.5% to $258.3 billion, led by gains in machinery, equipment, and supplies. On a year-over-year basis, national wholesale sales were up 4.3%.

Overall, March’s wholesale trade results suggest Canada’s domestic supply chains remain stable, with key sectors like motor vehicles showing notable strength. However, with U.S. trade policy still in flux, particularly around tariffs, the country’s reliance on cross-border commerce leaves it vulnerable to external shocks. As Ottawa navigates its economic agenda, the durability of this growth will increasingly hinge on developments in Washington and the broader trajectory of Canada-U.S. trade relations.