Statistics Canada reports that Canadian small business wholesale sales are up
It may be good news for small business owners that Canadian wholesale sales reportedly increased for the sixth time in seven months, according to data from Statistics Canada.
December's sales reached $42.8 billion, increasing by 0.7 percent from the previous report. Statistics Canada reports that sales in all the major industry sectors except for household goods rose at the end of 2009, setting a positive tone for 2010.
The leader in sales increases was the machinery and electronics sector. Sales climbed to $8.8 billion in December, increasing by 1.2 percent from November, according to the data.
The ratio of inventory to sales also declined from 1.27 in November to 1.25 in December. This should be good news for small business owners as it means they are effectively selling their goods; the inventory-to-sale ratio represents the number of months it would take for a business to exhaust their inventory.
Wholesale inventories decreased for the tenth month in a row, bringing inventories to their lowest level since December of 2006.
In addition to increasing sales, Neilsen Global's Consumer Confidence Index reveals that Canadian consumers are increasingly confident in the markets. With this information in mind, small business owners might be encouraged to consider expanding their small businesses.
