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Canada. Bad weather hurts agriculture, wholesales down
23.07.2010 11:19 "Agro Perspectiva" (Kyiv) —
Bad weather in Western Canada helped push down wholesale sales in May, with the value of agricultural supplies dropping by almost 30%, government figures showed.
The value of wholesale sales fell 0.1% to $44.1 billion, Statistics Canada said. That compares with economists’ forecasts for a gain of 0.4%. In volume terms, sales dropped 1.5%, it said.
Sales gained in six out of seven sectors, with the agricultural component of the miscellaneous subsector the only one posting a decline, it said.
Record spring rains across the Prairie provinces have washed out crops, slashing demand for seeds and fertilizers. The Canadian Wheat Board estimates that between 8.25 million and 12.5 million acres of farmland will go unseeded this year, with the wheat growing area of Western Canada the smallest since 1971.
Sales declined in six provinces, led by Saskatchewan which had the steepest drop in about five years, falling 12.3%. Manitoba recorded its biggest fall in seven years, with wholesale sales declining 9.1%.
Outside of agriculture, the biggest gains in the month were in the machinery, equipment and supplies and the food, beverage and tobacco subsectors, StatsCan said.
Machinery and supplies rose 1.9% to $9.1 billion, while foods, beverages and tobacco had the seventh consecutive monthly increase rising 1.3%.
Economists said the rise in machinery was an encouraging sign.
«Business investment is an important cog in the recovery story,» HSBC economist Stewart Hall said in a note. «There is a necessary roll over in demand drivers away from a reliance on the consumer and government over to growth in business and external demand.»
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