Friday, March 29, 2024
HomeBusinessCanada trade surplus narrowed in July as imports outpaced exports By Reuters

Canada trade surplus narrowed in July as imports outpaced exports By Reuters

Date:

Related stories

Essential Tips for Investor Relations Events

Investor Relations (IR) is key to the success of...

Buying a Modern Kitchen Sink: How to Choose a Shop

If you are doing some home renovations, and the...

The Impact of School Districts on Home Sales in Dayton

When selling a home in Dayton, Ohio, several elements...

Elevate Your Everyday: Tips and Insights for Enhancing Your Lifestyle

Introduction With long periods of business experience, Michael's group utilizes...


© Reuters. FILE PHOTO: Shipping containers are seen behind fencing in the Port of Montreal in Montreal, Quebec, Canada, May 17, 2021. REUTERS/Christinne Muschi/File Photo

By Julie Gordon

OTTAWA (Reuters) -Canada posted a narrower trade surplus in July than in the previous month, missing analyst expectations, as imports rose at a faster pace than exports, Statistics Canada data showed on Thursday.

Canada’s surplus with the world was C$778 million ($616.6 million) in July, down from a downwardly revised C$2.6 billion surplus in June, the largest in nearly 13 years.

Analysts surveyed by Reuters had on average forecast a surplus of C$1.40 billion in July.

“All things considered, I’d say it’s an upbeat month,” said Peter Hall, chief economist at Canada’s export development agency, noting that exports rose in seven of 11 categories.

Exports were up 0.6% in the month, hitting another record high at C$53.8 billion, as gains in motor vehicles and parts, along with energy and other sectors offset a sharp decrease in exports of lumber and forestry products.

“One of the real highlights of the month is that back-to-back sharp increase in the auto sector, giving us a sense that even with the chip shortage the movements of autos and parts are actually occurring,” said Hall.

Imports, meanwhile, jumped 4.2% to hit a record high of C$53.0 billion, mostly on inbound motor vehicles and parts.

Canada’s trade activity with the United States, its largest trading partner, reached record levels in July, mostly driven by growth in auto sector trade. Trade activity with the rest of the world declined.

See also  101desires.com - Best content website for technical updates on internet

Economists noted that while risks remain from the computer chips shortage, shipping constraints and pandemic, the July numbers suggest trade could help boost economic activity in the third quarter.

“There’s still plenty of data to go for Q3, but it looks like trade will add to GDP growth in the quarter,” said Benjamin Reitzes, Canadian rates and macro strategist at BMO Capital Markets.

The Canadian dollar was trading 0.1% higher at 1.2604 to the greenback, or 79.34 U.S. cents.

($1 = 1.2618 Canadian dollars)

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





Source link

Bellie Brown
Bellie Brownhttps://businesstimes.org
Hi my lovely readers, I am Bellie brown editor and writer of Businesstimes.org. I write blogs on various niches such as business, technology, lifestyle., health, entertainment, etc as well as manage the daily reports of the website. I am very addicted to my work which makes me keen on reading and writing on the very latest and trending topics. One can check my more writings by visiting Cleartips.net

Latest stories