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.
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.
