Canada’s trade surplus narrowed in July, as imports soared to a new record-high, significantly outpacing exports.
According to data published by Statistics Canada on Thursday, the country’s trade surplus fell from a revised $2.6 billion in June to $778 million in July, amid a surge in imports. Total imports rose 4.2% to a record $53 billion, and were up across 9 of the 11 product categories. Motor vehicle parts were responsible for two-thirds of the increase, which grew 21.1% in July.
Following a strong increase in June, total exports were up 0.6% in July to yet another record-high of $53.7 billion— but still not enough to offset the surge in imports. The modest increase was primarily due to a sharp decline in lumber exports, which slumped 23.6% amid a decrease in demand, and subsequent drop in prices.
In the meantime, trade activity with the US soared to a record levels in July, as imports rose 8.4% to $34.1 billion, and exports jumped 3.6% to $40.8 billion— both record-highs. The elevated trading activity coincided with the Canadian dollar’s 2 cent decline against the US dollar between June and July.
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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.
