Each day TFO Canada publishes a sample of trade news on the Canadian import market along with any new, updated or changed regulations and legislations regarding international trade; countries in which TFO Canada offers services and on the export sectors which it promotes.
Wholesale Services Price Index, fourth quarter 2016Thursday, May 18, 2017 > 09:54:59
The Wholesale Services Price Index (WSPI) was up 1.3% in the fourth quarter compared with the previous quarter. This was the fifth consecutive quarterly gain. Of the eight subsectors, five were up and three were down in the fourth quarter.
The gain in the fourth quarter was led by petroleum and petroleum product merchant wholesalers (+17.9%). This increase coincided with the Organization of the Petroleum Exporting Countries (OPEC)'s decision in late-November to limit crude production, which drove crude prices upward.
Also contributing to the increase were higher margins for food, beverage and tobacco merchant wholesalers (+2.2%), as higher margins for other specialty-line food (+5.0%) and fish and seafood (+17.1%) merchant wholesalers more than offset the declines for general-line food merchant wholesalers (-5.3%).
To a lesser extent, margins for building material and supplies (+1.2%), miscellaneous (+0.6%) and machinery, equipment and supplies (+0.2%) merchant wholesalers were also up.
Moderating the increase in the WSPI in the fourth quarter were lower margins for farm product merchant wholesalers (-4.8%), as a result of decreasing margins for live animal (-12.4%) and oilseed and grain (-4.2%) merchant wholesalers.
Personal and household goods (-0.6%) and motor vehicle and motor vehicle parts and accessories (-0.2%) merchant wholesalers also posted declines.
The WSPI advanced 3.8% in the fourth quarter compared with the same quarter in 2015. This was the 13th consecutive year-over-year increase.
Food, beverage and tobacco merchant wholesalers recorded the largest year-over-year margin gain (+9.9%), followed by miscellaneous merchant wholesalers (+7.9%).
Margins were also up for machinery, equipment and supplies merchant wholesalers (+5.0%), the seventh consecutive year-over-year increase.
Motor vehicle and motor vehicle parts and accessories (+4.8%), farm product (+4.2%), building material and supplies (+2.3%) and personal and household goods (+0.5%) merchant wholesalers also posted gains.
Petroleum and petroleum products merchant wholesalers (-11.6%) recorded the lone year-over-year decline, following a 20.0% decline the previous quarter.