OTTAWA(MNI) – Canada’s goods trade deficit narrowed to C$469 million in June from C$781 million in May, largely due to a gain in export volumes. Despite the shrinkage, June marked the the 18th consecutive deficit, Statistics Canada reported Tuesday.
Canadian exports rose for the first time in three months, rising 1.4% to C$39.6 billion, led by gains in metal and non-metallic mineral products (+11.6% to C$4.8 billion), aircraft and other transportation equipment (+24.2% to C$ 1.7 billion) and motor vehicles and parts (+5.5% to C$5.8 billion).
An increase in volumes of unwrought precious metals and precious metal alloys (+32.0%) was the primary reason for exports growing in metal and non-metallic mineral products. Additional upward support was provided by unwrought nickel and nickel alloys (+47.6%) as well.
The overall export growth was moderated by declines in exports of farm, fishing and intermediate food products (-9.4% to C$2.1 billion) and forestry products and building and packaging materials (-7.3% to C$2.6 billion).
Canadian imports grew 0.6% to C$40.0 billion after retreating 2.7% to C$39.8 billion in May, and were higher mainly due to increase in imports of energy products (+20.1% to C$3.8 billion) and aircraft and other transportation equipment (+27.3% to C$1.3 billion).
Energy product imports surged 20.1% to C$3.8 billion largely due to a 16.7% increase in volumes. Crude oil and crude bitumen imports advanced 53.0% after declining 33.5% in May, while imports of refined petroleum energy products retreated 15.1%, holding back the overall increase.
Declines in imports of consumer goods (-2.9% to C$8.0 billion), basic and industrial, chemical, plastic and rubber products (-6.7% to C$3.2 billion) and electronic and electrical equipment and parts (-3.5% to C$4.8 billion) moderated the overall increase in imports.
Imports from the U.S. fell 0.8% to C$25.6 billion, while exports rose 1.5% to C$29.4 billion, lifting Canada’s trade surplus with the U.S. to C$3.8 billion from C$3.2 billion in May. Despite the slide in imports, year-to-date totals for U.S. imports reached C$153.3 billion, its highest value on record, the agency said.
Imports from countries other than the U.S. increased 3.3% to C$14.5 billion while exports grew 1.4% to C$10.2, billion, as a result Canada’s trade deficit with non-U.S. countries widened to C$4.3 billion from C$3.9 billion in May.