Canada’s trade surplus makes unexpected jump to $2.6B: StatsCan

Led by motors vehicles and parts, Canada’s merchandise exports grew by 1.4% in July, while imports edged down 0.3%, according to Statistics Canada.

This raised the country’s Canada’s trade surplus with the world to $2.6 billion from $1.8 billion in June. Economists had expected a surplus of about $1.2 billion, according to Thomson Reuters.

Exports rose to $45.5 billion, while imports slipped to $43 billion, with lower imports of aircraft, other transportation equipment and parts and consumer goods, as well as metal and non-metallic mineral products.

Exports to the United States rose 1.9% to $34.4 billion in July and imports from the U.S. increased 1.2% to $29.2 billion. Motor vehicles and parts was the main contributor to both gains. Canada’s trade surplus with the U.S. widened from $4.9 billion in June to $5.1 billion in July.

Exports to countries other than the U.S. edged up 0.1% to $11.2 billion, StatsCan said. Imports from countries other than the United States declined 3.2% to $13.7 billion, as imports from the principal trading area “all other countries” (-4.6%) and the European Union (-3.7%) fell. Canada’s trade deficit with countries other than the United States narrowed from $3.0 billion in June to $2.6 billion in July.

Exports of motor vehicles and parts grew 9.7% to $6.9 billion in July, StatsCan said. Motor vehicles and parts increased for the fifth time in seven months, as automobile sales in both Canada and the U.S. have hit record highs throughout the year. In July, exports of passenger cars and light trucks (+10.2%) led the overall gain, with an increase also being recorded for motor vehicle engines and motor vehicle parts (+8.9%).