(Bloomberg) -- Canadian wholesalers posted their strongest two-month gain in more than three years, another sign the economy is picking up steam after a weak stretch.
Wholesale sales rose 1.7% in April, exceeding the highest forecast in a Bloomberg survey of economists. It was the largest increase since 2016 and the fifth consecutive gain.
When combined with March’s 1.4% increase, Canada’s wholesalers posted their strongest two months since the end of 2015. Excluding price increases, wholesales increased 1.6%.
Strong motor vehicle sales and parts led the April increase, rising 3.2% -- a payback from 1.9% decrease in March. Still, wholesale sales rose 1.4% excluding the auto sector, signaling the broad nature of the increase.
The results are “in-line with the Bank of Canada’s expectation that the second quarter will see a rebound in Canadian economic activity,” Brett House, deputy chief economist at Bank of Nova Scotia, said by email. “April GDP, due Friday, is likely to come in above the consensus 0.2% mark.”
The inventory to sales ratio pulled back to 1.39 in April, from 1.40 previously.
Economists surveyed by Bloomberg were expecting just 0.2 percent growth on the month.
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