Canada’s merchandise rebounded sharply in June, as a surge in exports brought trade to a surplus position.
According to Statistics Canada, the trade balance reversed from a deficit of $1.4 billion in May to a surplus of $3.2 billion in June, as exports soared by 8.7% to a new record of $53.8 billion. Nine of the 11 product sectors reported gains, with exports of energy products surging to $11.3 billion— the highest since March 2019.
Similarly, exports of motor vehicles and parts were also up in June and rising by 14.9%, following a slowdown amid the ongoing global semiconductor shortage. Exports of metal and non-metallic mineral products rose 12.7%, to a record-high of $6.7 billion.
In the meantime, imports fell 1% in June to $50.5 billion, as 7 of the 11 product sectors noted declines. Consumer goods imports contributed the most to the overall decline, falling by 3.7%. Imports of motor vehicles and parts were down 3.8%. Offsetting the declines, though, imports of aircraft and other transportation equipment and parts jumped 28%, as Canada added new airliners and cargo aircraft in June.
Statistics Canada also reported that exports to the US rose 8.2% to a new record-high of $39.7 billion, largely due to elevated exports of passenger cars and light trucks, as well as crude oil. Imports from the US were also up in June, rising 1.9%, as Canada’s trade surplus with the US grew from $5.9 billion to $8.3 billion in June— the biggest surplus since 2008.
Information for this briefing was found via Statistics Canada. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.