In another sign that the economy is slowing, Canada’s wholesale trade declined 1.1% in March to $81.4 billion.
Statistics Canada said that sales were down in three of the seven subsectors that it tracks, leading to an overall decline during the month.
The motor vehicle and motor vehicle parts and accessories subsector posted the biggest drop as sales fell 5.8% to $13.4 billion.
The decrease among motor vehicle companies was blamed on automotive plants retooling, while the new and used motor vehicle parts industry fell 1.2% to $2.7 billion.
The miscellaneous subsector dropped 5% to $10.2 billion in March, while the machinery, equipment and supplies subsector rose 1.6% to $17.9 billion.
In volume terms, wholesale sales, excluding petroleum, petroleum products, and oilseed and grain, decreased 1.2%.
The March decline presents further evidence that Canada’s economy is decelerating amid high interest rates used to lower inflation.
The economic decline is expected to prompt the Bank of Canada to begin lowering interest rates as early as June of this year.
