Exports from Canada increased to $45.2 billion in June, according to Statistics Canada data released August 6, reaching the highest amount on record.
This represents an increase of 1.1% from May’s total exports of $44.7 billion. The jump is attributable to a 1.0% increase in volumes and a slight upward rise of 0.2%.
Most of this growth is driven by exports to countries other than the United States. Total exports to the European Union and all other countries besides the U.S. grew by 4.8% to $11.1 billion.
Exports to the U.S. remained at $34.1 billion.
“Wating for Canada’s export recovery has been a bit like waiting for Godot, but there are signs that the tide is finally turning,” said CIBC senior economist Peter Buchanan.
“The largest positive print since late 2011 far outperformed the consensus’s expectation for a roughly flat reading, and our own more constructive prediction.”
Metal and non-metallic mineral products, consumer goods and energy products led the overall increases in exports.
Canada’s overall trade surplus with the world increased from $576 million in May to $1.9 billion, as imports dropped by 1.8% to $43.3 billion. This was due to a 1.5% increase in imports from the U.S. to $29.1 billion. Imports from all other parts of the world fell in June.
In addition to June’s advances, May’s overall trade was revised upward. A month ago, Statistics Canada had originally reported a $0.2 billion trade deficit. This has been adjusted to a $0.6 billion surplus.
The strong numbers reported for May and June need to be taken with a grain of salt, according to Buchanan.
There are reasons not to get too carried away with today’s report,” he said.
“Some of the improvement in exports may have reflected the continuing rebound from the after-effects of an unusually severe winter.”
