The economy of Canada was recovering well in summer last year, after the spring lock-downs ended. But, it was showing signs of weakness in early Autumn, while the weakness grew further as the restrictions also increased in November. December is looking to be worse, with wholesale sales taking a dive. January is expected to be worse, so we might see another recession in Canada, just like in Europe.

Canada December wholesale sales and inventories

• December wholesale sales -1.3% vs -1.7% expected
• Prior was +0.7%
• First decline after seven months of gains
• Inventories -0.1% vs -0.6% prior
• Inventories -1.7% y/y
• Sales in five of the seven sub-sectors were higher than the pre-COVID-19 benchmark, led by building material and supplies (+12.2%), and machinery, equipment and supplies (+6.6%)
• Motor vehicle and motor vehicle parts and accessories sales fell for the second consecutive month, down 4.3%