USDCAD Remains Supported at 1.36 After Soft Sales in Canada

Wholesale Sales

• Actual: -0.8%
• Expected: -0.9%
• Prior: +2.4%

Wholesale sales declined by 0.8%, which was slightly better than the expected drop of 0.9%. However, this marks a significant downturn from the previous month’s increase of 2.4%.

Manufacturing Sales

• Actual: +0.4%
• Expected: +0.2%
• Prior: +1.1%

Manufacturing sales increased by 0.4%, surpassing expectations of a 0.2% rise, though growth slowed compared to the prior month’s 1.1% gain.

Wholesale Inventories

• Inventory Growth: +0.9%
• Inventory-to-Sales Ratio: Increased from 1.53 in April to 1.55 in May

The inventory-to-sales ratio climbed, indicating that inventories are growing faster than sales.

Subsector Performance

Five out of seven wholesale subsectors experienced a reduction in sales. The motor vehicle and motor vehicle parts and accessories subsector saw the largest drop, with a 3.8% decline.

When comparing May of this year to the same month last year, wholesale sales decreased by 0.9%.

Manufacturing Sales Drivers

• Aircraft Product and Components: +11.2%
• Food Products: +1.4%
• Paper Products: +5.5%

Increased output in the aircraft product and components industrial group was the primary driver of manufacturing sales, followed by greater sales in the food and paper product subsectors.

Manufacturing Sales Declines

• Motor Vehicles: -4.2%
• Petroleum and Coal Products: -2.2%

Motor vehicles and petroleum and coal products experienced the largest declines in manufacturing sales.