Canadian Imports And Exports Pick Up In July

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The volume of Canada's trade with the rest of the world picked up in July as the global economy showed signs of stabilizing following the worst contraction in decades.

Merchandise imports and exports both increased in July, according to data released by Statistics Canada Thursday.

Imports were up 8.3% to $31.7 billion while exports grew 3.3% to $30.3 billion. As a result, Canada registered a trade deficit of $1.4 billion in July compared with a trade surplus of $37 million in June. Economists expected a much more modest deficit.

The gain in imports halted four consecutive months of decline and was the result of an 8.7% rise in volumes as prices edged down 0.4%. Although the increases were widespread, machinery and equipment, automotive products and energy products were the main sources of growth.

The second consecutive monthly advance in exports was attributable to a 5.9% increase in volumes, as prices declined 2.4%. Higher exports of machinery and equipment and automotive products led the increase in overall exports. Declines in exports of energy products tempered the gain.

Canada's trade surplus with the United States shrank to $1.9 billion in July from $3.2 billion in June, as the growth in imports outpaced the increase in exports. Imports from the United States rose 9.9%, mainly as a result of higher imports of organic chemicals and aircraft. Exports were up 2.5%, mostly due to increases in exports of aircraft.

Imports and exports to countries other than the United States both advanced 5.7%, and the trade deficit with this group of countries grew to $3.4 billion in July from $3.2 billion in June.

(Market News Provided by RTTNews)