Agricultural supplies slump sets wholesale trade back

Wholesale trade in Saskatchewan fell by nearly three per cent from May to June — and 10 per cent year over year, the secondlargest drop among the provinces — largely due to declining sales of agricultural supplies, Statistics Canada reported Monday. What: The monthly wholesale trade survey covers all industries within the wholesale trade sector, including motor vehicle and parts, personal and household goods, building materials and supplies, machinery equipment and supplies, food, beverage and tobacco and miscellaneous subsectors, which includes agricultural supplies. What’s up, what’s down: “In Saskatchewan, wholesale sales fell 2.7 per cent to $1.9 billion in June,’’ the federal agency said. “As in Manitoba, lower sales in the agricultural supplies industry contributed the most to the decline in this province.”

Doug Elliott, publisher of Sask Trends Monitor, a monthly statistical newsletter, said wholesale trade in the province has been below normal levels throughout 2016.

“The June figures show a pattern similar to the first five months, with a 26.5 per cent drop in agricultural supplies such as fuel and fertilizer,’’ Elliott said. “Machinery and equipment sales, on the other hand, are up 2.8 per cent, with a 16.3 per cent increase in farm machinery. So Saskatchewan farmers are spending more on equipment and less on fuel and fertilizer.’’ What it means: “Falling wholesale trade is yet another indicator of a weakening provincial economy,” said ReginaLewvan NDP MP Erin Weir in a commentary.

But Elliott said employment in the sector was up 12 per cent in the first half of the year.

“The wholesale trade sector is coming off a stretch of very good years, with 2015 sales of $26.5 billion compared with $16 billion in 2009,’’ Elliott said. “A downturn in 2016 was probably inevitable and sales the first six months of the year are 14 per cent below the record levels in 2015.”