Canada’s trade surplus expands in June as consumer goods export volumes grow: EDC

OTTAWA, Ont.–The value of Canadian exports increased by 1.4% in July led by a significant advance in shipments of motor vehicles and parts, which increased by 9.7% during the month. This growth was due entirely to higher export volumes as prices for automotive products fell 0.7% compared to June.

The increasing year-to-date strength of Canadian exports of automotive products, which are now pacing 9.2% ahead of last year, reflects the growing sales momentum in the United States and Canada made possible by the rebound in economic activity and consumer confidence during the second quarter of this year.

While the UK demand for Canadian products led growth in merchandise exports for July with double-digit growth, continued demand growth from the US led gains in trade year-to-date, with exports to those markets up by 13.4% from the same period a year ago. Exports to emerging markets have grown by 1.7% during the same period, said an EDC report.

Exports from Alberta, up 5.1%, led trade growth during the month of July, largely due to demand for energy products. Although Quebec’s trade growth in automotive products was the strongest among all provinces, it experienced trade weakness in most other product categories.