Canadian wholesale sales slowed sharply in January. The latest preliminary data shows a monthly contraction. This comes after a strong gain in the previous month. The numbers are now drawing attention to EWC and the broader Canada economy outlook.

Canadian wholesale sales January data

Canadian Wholesale Sales MoM Prel for January came in at -0.6%. In December the reading was 2%.

This marks a clear reversal. From a 2% expansion to a 0.6% contraction in just 1 month. The swing shows softer activity at the start of the year.

Wholesale sales measure the value of goods sold by wholesalers. It is an important indicator of business demand. When wholesale sales rise, it often signals stronger retail and manufacturing activity ahead. When they fall, it can point to slower economic momentum.

A negative 0.6% print suggests businesses reduced inventory purchases or faced weaker orders in January.

EWC reaction and Canada’s economic outlook

EWC, which tracks Canadian equities, may see cautious trading after the data. A slowdown in wholesale activity can weigh on investor sentiment.

The drop follows a strong 2% gain in the previous month. That earlier surge now looks temporary. January’s contraction suggests momentum is cooling.

If upcoming data confirms the weakness, it could raise concerns about growth in the first quarter. Markets will now look at retail sales, employment numbers, and inflation for confirmation.

For now the headline number is simple. Canadian wholesale sales fell 0.6% in January after rising 2% previously. The shift signals a softer start to the year for Canada’s economy.