Canada December wholesale trade beats estimates

Greater business demand for machinery and equipment helped boost Canadian wholesale trade by 0.7 percent in December from November while inventories shrank to a three-year low, Statistics Canada said on Wednesday.

The increase beat market estimates of 0.5 percent sales growth in the month. Statscan revised the November sales growth to 2.7 percent from 2.5 percent previously.

Statscan said strength was spread across six of the seven wholesale sectors.

Machinery and equipment sales, which includes computers and office equipment, contributed most to the gains with a 1.2 percent increase. The performance supports a Bank of Canada business survey which indicated that businesses were prepared to increase investments as the financial crisis fades.

Reuters

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza