Merchandise exports from Canada increased 1.4% in July to $45 billion, Statistics Canada reported September 4, driven in large part by a 9.7% jump in motor vehicles and parts.
The majority of these exports were to the United States, where a 1.9% increase resulted in total exports of $34.4 billion.
According to Robert Kavcic, senior economist and vice president, economic research at BMO, “the rising tide of stronger U.S. demand and past weakness in the Canadian dollar is now lifting almost all export ships.”
Imports dropped 0.3% to $43 billion. As a result, Canada’s trade surplus with the world saw a jump to $2.6 billion, easily beating analysts’ expectations.
“That’s the biggest Canadian surplus since late 2011, and should lend some credibility to the staying power of the recent export outperformance – which will be needed in convincing the Bank of Canada that at least part of the their rotation away from the consumer is underway,” said Nick Exarhos of CIBC World Markets.
