(Ottawa) Canada’s merchandise trade surplus fell to $778 million in July as imports rose more than exports, Statistics Canada reported Thursday.
This result compared to a revised trade surplus of $2.6 billion for the month of June (preliminary reading indicated a surplus of $3.2 billion).
TD Bank economist Omar Abdul Rahman said the data is the latest in a list of recent negative economic surprises that indicate that the Canadian economy experienced a period of weakness in the early third quarter.
“But despite the overall negative effects of the report, not all the details were grim,” Abdel-Rahman wrote in a report.
For example, a significant increase in imports indicates an improvement in domestic demand during the month. Several industries also recorded strong growth in exports. ”
Statistics Canada reported earlier this week that the economy contracted at an annual rate of 1.1% in the second quarter, and its initial estimate for July was a 0.4% decline from the month.
The trade surplus for July came with the value of total imports rising 4.2% to a record $53.0 billion.
Statistics Canada said imports of autos and auto parts rose 21.1% and accounted for more than two-thirds of the total increase during July, which is usually marked by temporary factory closures in July. summer vacation.
Also, imports of electronic and electrical appliances and their parts rose 8.5% in July thanks to imports of communications, audio and video equipment.
Meanwhile, total exports rose 0.6% in July to 53.7 billion, another record high. Gains in a number of different sectors were partially offset by a sharp decline in lumber exports.
Exports of cars and spare parts increased by 6.4%, while exports of energy products increased by 1.9%.
Excluding exports of sawn timber and other sawmill products, total exports increased by 2.0%.
In volume terms, total imports rose 1.9% in July, while exports declined 0.3%.
Meanwhile, the country’s international trade deficit in services widened to 301 million in July from 60 million in June, with imports increasing by 3.7% and exports by 1.00.2%.
Canada’s trade surplus with the world for goods and services combined fell to $477 million in July from $2.5 billion in June.
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