Canada Reports Trade Surplus in July


Canada's trade surplus widened to $2.6 billion in July from $1.8 billion in June as exports increased 1.4 percent while imports edged down 0.3 percent.

Exports rose to $45.5 billion, led by motor vehicles and parts. Overall, volumes increased 1.1% and prices 0.3%.

Imports edged down to $43.0 billion, as prices declined 0.6% while volumes increased 0.4%. Lower imports of aircraft and other transportation equipment and parts, consumer goods as well as metal and non-metallic mineral products were partially offset by higher imports of motor vehicles and parts.

Exports to the United States rose 1.9% to $34.4 billion in July and imports from the United States increased 1.2% to $29.2 billion. Motor vehicles and parts was the main contributor to both gains. Canada's trade surplus with the United States widened from $4.9 billion in June to $5.1 billion in July.

Exports to countries other than the United States edged up 0.1% to $11.2 billion. Imports from countries other than the United States declined 3.2% to $13.7 billion, as imports from the principal trading area "all other countries" (-4.6%) and the European Union (-3.7%) fell. Canada's trade deficit with countries other than the United States narrowed from $3.0 billion in June to $2.6 billion in July.

Exports of motor vehicles and parts grew 9.7% to $6.9 billion in July. Motor vehicles and parts increased for the fifth time in seven months, as automobile sales in both Canada and the United States have hit record highs throughout the year. In July, exports of passenger cars and light trucks (+10.2%) led the overall gain, with an increase also being recorded for motor vehicle engines and motor vehicle parts (+8.9%).

Exports of energy products declined 2.1% to $11.3 billion, as prices were down 1.8% and volumes edged down 0.3%. The main contributor to the decrease in exports was crude oil and crude bitumen, which fell 1.6% to $8.5 billion in July following a record high of $8.6 billion in June. Exports of natural gas declined for a fifth consecutive month, down 6.3% to $1.1 billion in July as volumes fell 4.6% and prices 1.8%.

Imports of aircraft and other transportation equipment and parts fell 11.9% to $1.4 billion in July. The main contributor to the decline was the commodity grouping "ships, locomotives, railway rolling stock, and rapid transit equipment," which decreased $92 million to $43 million in July. Aircraft engines and aircraft parts declined 9.2% to $687 million.

Imports of consumer goods declined 1.9% to $8.6 billion, a third consecutive monthly decrease. Volumes decreased 1.0% and prices 0.9%. There were widespread declines in imports throughout the section, led by clothing, footwear and accessories (-4.4%) and miscellaneous goods and supplies (-2.6%).

Also declining in July were imports of metal and non-metallic mineral products, down 4.4% to $3.5 billion on lower volumes. Lower imports were recorded for unwrought precious metals and precious metal alloys (-15.8%) and unwrought copper and copper alloys (-60.0%). Imports of these two commodities tend to fluctuate on a month-to-month basis.

Partially offsetting the declines were imports of motor vehicles and parts, which rose 2.7% to $7.8 billion. Volumes were up 2.2%. Leading the gains were imports of motor vehicle engines and motor vehicle parts (+7.4%).

Canada Reports Trade Surplus in July


Statistics Canada | anna@tradingeconomics.com
9/4/2014 1:41:17 PM