UPDATE 1-Canada wholesale trade stalls in October

* Wholesale trade flat in Oct vs forecast of +0.8 pct

* Weak machinery, equipment sales offset auto sector gains
(Adds details)

OTTAWA, Dec 20 (BestGrowthStock) – Canadian wholesale trade
remained flat in October, disappointing market expectations as
auto sector-led gains were offset by a sharp drop in demand for
machinery and equipment, Statistics Canada said on Monday.

Markets had expected a 0.8 percent increase in sales in the
month, according to the median forecast in a Reuters poll.
However, Statscan’s revisions showed wholesale activity fared
better in September than previously thought with a 0.7 percent
gain compared with 0.4 percent initially.

Wholesalers have posted modest growth this year after a
sharp rebound in late 2009.

Four of the seven subsectors registered higher sales in
October, led by the motor vehicles and parts industry and
personal and household goods. The gains were erased mainly by a
decline in machinery, equipment and supplies as demand sank for
computer and communications equipment.

Inventories fell 0.7 percent after growing in five of the
previous six months. The inventory to sales ratio fell to 1.17
from 1.18 in September.

Sales grew 8 percent compared with October 2009. In volume
terms, sales climbed 0.3 percent in October and have been
relatively stable since the start of this year.
(Reporting by Louise Egan and Howaida Sorour, Editing by
Chizu Nomiyama)

UPDATE 1-Canada wholesale trade stalls in October