Canada wholesale sales rise in September as machinery and auto subsectors lead gains

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Canada September wholesale sales rise

Highlights

Canadian wholesale sales excluding petroleum and grains rose in September, led by machinery (up 3.6% to $20.7 billion) and automotive (up 2.4% to $15.5 billion) subsectors.
Inventories excluding specific commodities increased 0.2% to $141.9 billion in September, with the inventory-to-sales ratio edging down to 1.53 from 1.54.
Wholesale sales for Q3 2026 rose 1.5% to $277.5 billion and are 7.8% higher year-over-year, but volume terms slipped 0.2%.

September sales growth and subsector drivers

As reported by Statistics Canada, wholesale sales excluding petroleum, petroleum products, other hydrocarbons, oilseed and grain rise in five of seven subsectors in September, accounting for 68.1% of total wholesale sales. The biggest gain comes from the machinery, equipment and supplies subsector, where sales increase 3.6% to $20.7 billion, followed by the motor vehicle and motor vehicle parts and accessories subsector, up 2.4% to $15.5 billion.

Within machinery, higher sales in the computer and communications equipment and supplies industry group, up 10.0% to $6.5 billion, mark the largest increase since March and reflect new product releases. In the automotive segment, all three industry groups post gains, led by the motor vehicle industry group, which rises 2.7% to $12.5 billion for its seventh increase since the beginning of the year.

The broader monthly result is partly offset by a 2.9% decline in the building material and supplies subsector to $13.6 billion. That pullback follows eight straight months of increases and is concentrated in the lumber, millwork, hardware and other building supplies industry group, which falls 6.6% to $6.2 billion.

Provincial performance, inventories and quarterly trend

Seven provinces report higher wholesale sales in September, led by Ontario and Saskatchewan. Ontario posts a 0.9% increase to $48.4 billion, with machinery, equipment and supplies driving growth after a 4.1% rise to $11.0 billion, while Saskatchewan records the second-largest provincial gain with sales up 9.8% to $4.2 billion.

Inventories excluding petroleum, petroleum products, other hydrocarbons, oilseed and grain increase 0.2% to $141.9 billion in September. The largest inventory gains come from the miscellaneous subsector, up 2.8% to $16.5 billion, and the motor vehicle and motor vehicle parts and accessories subsector, up 2.0% to $18.3 billion, while the inventory-to-sales ratio edges down to 1.53 from 1.54.

For the third quarter of 2026, wholesale sales rise 1.5% to $277.5 billion, with building materials and machinery posting the largest increases. Compared with the same quarter of 2025, quarterly sales are 7.8% higher, although volume terms show a 0.2% decline, suggesting price and product mix continue to support topline growth.

We have previously noted the Canada Budget 2026 plan to mobilize private investment while supporting affordability measures.

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