Greater business demand for machinery and equipment supported in boosting Canadian wholesale trade by 0.7 percent in December from November while inventories squeezed to a three-year low, Statistics Canada posted on Wednesday.

The rise reportedly surpassed the estimates of 0.5 percent sales growth in the month. Statisticians reaffirmed the November sales growth to 2.7 percent from 2.5 percent previously.

Machinery and equipment sales, including computers and office equipment, contributed most to the gains with a 1.2 percent jump. The performance backs Bank of Canada business survey which indicated that businesses were prepared to boost investments as the financial crisis loses its firmness.

Inventories reportedly fell for the tenth straight month, to 0.5 percent, their lowest reading since December 2006. The boosting sales combined with declining inventories lead to an inventory-to-sales ratio of 1.25 in December, down from 1.37 the previous year.

Fertilizer and agricultural supplies, building materials and automotive products also registered healthy gains.

Moreover, the building materials and automotive products sectors also accounted significant contributions to the growth witnessed in December, with increases of 1.3% and 0.9%, respectively.