Canadian Wholesale Trade Fell by 21.6% in April Amid Coronavirus Pandemic

The coronavirus pandemic caused many businesses across Canada to shut their doors, while consumers were instructed to stay at home and practice social distancing as means of reducing the spread of the virus. As a result, recent Statistics Canada data found that Canadian wholesale trade fell to the lowest level since 2013, with all subsectors suffering some sort of pandemic drawback.

Previously, Reuters analysts forecasted wholesale trade to decrease by 12.6%, but recent data is showing a much more grim picture. Wholesale trade in April fell to $49.8 billion, which translates to a reduction of 21.6%. The motor vehicle and parts subsector suffered the most significant decline, falling by an unadjusted $5.4 billion due to lack of sales, factory shutdowns, and dealership closures.

The personal and household goods subsector suffered the second worse contraction, with a loss in sales of $2.6 billion in April, followed by the textile, clothing, and footwear industry, which saw a decrease of $943 million stemming from reduced sales volumes and retail store closures.

Meanwhile, inventories of wholesale goods increased by 1.2% in April, indicative of a reduction in consumer demand. Although the numbers for April were grim, May is anticipated to show a rebound, as more restrictions are being lifted and many Canadians are returning to work.

Information for this briefing was found via Statistics Canada and Reuters. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Baselode Energy To Acquire Forum Energy: The Merger Of Equals Deal

TriStar Gold: The Revised Castelo de Sonhos Prefeasibility Study

Gold is Up 30%, But the Real Bull Market is Only Starting Now! | Adrian Day

Recommended

ESGold To Expand Mine Building At Montauban In Advance Of Gold & Silver Production

Goliath Resources Expands 2025 Drill Program To 60,000 Metres

Related News

Airbnb Facing Financial Difficulty, Lays off 25% of Workforce

As the coronavirus pandemic continues to ravage economies around the world, some industries are being...

Wednesday, May 6, 2020, 04:44:00 PM

Internet of Things Inc Sees Surge In Demand For ThermalPass

Internet of Things Inc (TSXV: ITT) (OTC: INOTF) reported this morning that it is experiencing...

Friday, May 15, 2020, 10:31:21 AM

Initial Jobless Claims in the US Continue to Surpass Economists’ Forecasts

Although the US economy was beginning to show signs of a rebound, the positive sentiment...

Friday, June 26, 2020, 03:33:00 PM

Trump’s Economic Advisor Makes Grim Prediction Regarding Q2 GDP and Unemployment Rate

Kevin Hassett, who is the White House economic advisor, is anticipating very grim GDP and...

Tuesday, April 28, 2020, 03:00:00 PM

US Economic Recovery Hits Standstill After Consumer Spending Declines Once Again

According to consumer spending data compiled by JPMorgan, it appears that the economic recovery in...

Tuesday, August 4, 2020, 03:41:34 PM