Canada's merchandise trade deficit shrinks

Share
Canada's merchandise trade deficit shrinks

Exports rose 4.1 per cent to $50.7 billion, with energy shipments up 7.1 per cent to the highest since 2014 and aircraft sales jumping by nearly 45 per cent.

A dip in auto exports and rising oil prices in June drove the biggest increase in the U.S. trade deficit in 19 months, reversing much of May's export bonanza, the government reported Friday.

Canada's trade gap narrowed dramatically in June, to its smallest in 17 months, as the country's exports surged to record levels even as protectionist trade clouds gathered.

Analysts had expected a trade deficit of $2.3 billion, according to a poll by Thomson Reuters Eikon.

The median estimate of economists surveyed by Bloomberg called for a June trade deficit of $46.5 billion.

On a volume basis, exports were up 2.1 per cent while imports were down 1.2 per cent.

The value of steel shipments fell to C$536.8 million in June from May while exports of aluminum to the United States, subject to a 10 percent tariff, dropped 7.0 percent to C$851.2 million.

As a result, the trade surplus with the United States grew to C$4.12 billion in June from C$3.33 billion in May.

There were increases during the month of exports of crude oil, heavy fuel oils, diesel fuel, metal ores and non-metallic minerals, motor vehicles and parts, as well as industrial machinery, equipment and parts. Last month, the Trump administration began following through with a March threat of tariffs on tens of billions of dollars of imported Chinese goods, prompting China to respond with retaliatory levies on high-value US exports such as soybeans.

"But the first indications for the month suggest that there could be some growth left to come in the second quarter, upgrading the odds of a likely Bank of Canada rate hike in the coming months".

A dip in auto exports and rising oil prices in June drove the increase in the gap between U.S. imports and exports, the Commerce Department reported Friday. It was the first time exports surpassed the Can$50 billion mark.

The latest numbers add to the case for the Bank of Canada to raise rates again in the near-term, Nye said, adding that he expects the central bank to continue its gradual approach to increasing the interest rates. That reflected a jump in shipments overseas of soybeans, up 40 percent in the first half of the year compared with 2017, and petroleum and related products.

"Much of the rise in exports was driven by Chinese imports of soybeans, which we believe reflects a reaction to potential imposition of tariffs", Barclays said last week in response to the GDP number. "Nominal exports jumped 4.1%, while imports edged down 0.2%". Energy exports were up 7.1 per cent month over month, while energy imports were down 15.1 per cent.

Share

Advertisement

Related Posts

Steven Seagal, actor, appointed Russian envoy to United States
For more than a decade Seagal, who according to his own website is 66, has been a regular visitor to Russian Federation . Action hero Steven Seagal has been appointed by Russian Federation as a special envoy for humanitarian ties with the US.

NES Classic mini console outsells PlayStation 4 and Switch
The NES Classic made its storied return to retail outlets in June, and it made something of a huge splash with its resurgence. Sites have a tendency to crash when Nintendo releases another wave of its mini consoles (either the NES or the SNES).

History at stake in Tennessee clash for US Senate
Diane Black , former state economic development chief Randy Boyd, businessman Bill Lee and state House Speaker Beth Harwell. He told his supporters Thursday he meant to run a positive race focused on jobs, affordable health care and good education.

Ryanair proposes mediation in pilot strikes row
Ryanair has said it will shift jobs and planes to more profitable areas, and threatened to move more if the strikes continue. The airline is bracing itself for another round of strike action next Friday, when 25 per cent of its pilots will strike.

12-year-old abducted at Reagan National Airport found safe
Investigators say cameras at the airport show the girl changing her clothes with the help of her alleged abductor. Police believe the child and her suspected abductor left the airport in a white Infinity SUV with NY plates.

U.S. jobs report: July disappoints with only 157,000 jobs added
This year's pickup comes after a steady economic recovery that has entered its tenth year and is now the second-longest on record. Faucher writes that as that happens, job growth will slow down because businesses will find it more hard to recruit new hires.

Washington Open: Andy Murray beats Marius Copil to reach quarter-finals
Falling a set behind appeared to spark Murray to life and he grabbed an early break in the second against the world No. 93. Norrie won almost three-quarters of his first serve points as he dismissed the fourth seed and world number 25.

Transfer: Manchester United, Tottenham close to sealing deal on £60million defender
And, after the transfer twist involving United and Everton , the defender may have to make do with reduced game time next season. The Old Trafford unit believe that they will get their target inside the next 48 hours.

'Mission: Impossible' is still going strong in wild 'Fallout'
This new partnership will include new PUBG Mobile skins, parachutes, and different in-game music. The new Mission Impossible event is now available for both iOS and Android users.

TJ Dillashaw KO’s Cody Garbrandt To Retain The Bantamweight Title
Dillashaw simply repeated himself, only quicker. Here are the results thus far for UFC 227 . With the win, Dillashaw moves to 17-3.

© 2015 ExpressNewsline. All Rights reserved.