Thursday, October 2nd3.9°C
22738
20700

Cdn economy gets boost in second quarter from big improvement in trade

OTTAWA - Canada racked up a solid trade surplus during June as exports hit a record level due to a strong showing from the energy sector.

Statistics Canada said Wednesday that Canada's trade surplus with the rest of the world came in at $1.9 billion, up from a revised $576 million in May, and exceeding the $150 million deficit that economists had generally expected.

"The big swing back to a trade surplus, the fourth in the past five months, is certainly welcome news and marks the second straight quarterly surplus following two years of deficits," said BMO Capital Markets senior economist Benjamin Reitzes.

"It looks as though trade is going to add more to (economic) growth in the second quarter than previously expected."

The agency reported that merchandise exports rose 1.1 per cent in June to a record high of $45.2 billion.

Strong performers included the energy sector, as exports of energy products ran up 2.5 per cent to $11.9 billion. Crude oil and crude bitumen increased 2.8 per cent to a record high of $8.9 billion, as prices rose 2.2 per cent.

The mining sector was also a major contributor to the trade surplus, while exports of metal and non-metallic mineral products increased 9.7 per cent to $4.8 billion as volumes rose 10.2 per cent.

Exports of consumer goods rose 8.3 per cent to $5.1 billion on higher volumes.

The trade picture improvement came despite a disappointing showing in the auto sector.

Exports of motor vehicles and parts fell 6.3 per cent to $6.2 billion in June after recording four consecutive monthly gains.

"The main factor behind the decrease in June was passenger cars and light trucks, which fell 8.8 per cent to $4.1 billion," Statistics Canada said.

Imports fell 1.8 per cent during June.

Imports of metal ores and non-metallic minerals fell 25.3 per cent to $752 million.

There were also declines in electronics, down 4.5 per cent and auto imports, which fell 2.5 per cent to $7.6 billion.

Exports to the United States remained unchanged at $34.1 billion in June, while imports were up 1.5 per cent to $29.1 billion — a record high.

Exports to countries other than the United States grew 4.8 per cent to $11.1 billion, led by the European Union, while imports fell 7.8 per cent to $14.3 billion.

The blowout trade number also had a positive effect on the Canadian dollar, which had been lower early Wednesday morning with traders avoiding risk amid growing tensions between Russia and Ukraine. But the loonie later rose 0.13 of a cent to 91.37 cents after closing Tuesday at a three-month low.

The Canadian Press


Read more Business News




Recent Trending




Today's Market
S&P TSX14690.38-115.061
S&P CDNX887.67-8.68
DJIA16793.92-10.79
Nasdaq4421.086-1.00
S&P 5001944.74-1.42
CDN Dollar0.8968+0.0012
Gold1212.40-3.10
Oil87.79-1.32
Lumber344.40+6.60
Natural Gas3.977-0.046

 
Okanagan Companies
Pacific Safety0.15+0.015
Knighthawk0.01-0.005
QHR Technologies Inc1.26+0.04
Cantex0.06-0.015
Anavex Life Sciences0.1805+0.0001
Metalex Ventures0.0550.00
Russel Metals34.75+0.07
Copper Mountain Mining2.20-0.09
Colorado Resources0.16-0.005
ReliaBrand Inc0.019-0.001
Sunrise Resources Ltd0.065+0.045
Mission Ready Services0.31-0.01

 





FEATURED Property
1805553524 - 3880 Truswell Road, Kelowna, BC
3 bedrooms 4 baths
$899,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


An income investment you may have overlooked

Investors seeking income often limit their selection to bonds and give little or no consideration to preferred shares. They usually ignore preferreds simply because they don't know much about them...


Power-save your way to a down payment

Part 2 of 2 to read Part 1, click here. 5. Dial down your vacations. New York is out. Maybe Buffalo. For West coast, maybe Seattle instead of Hawaii. Use sites like Airbnb (aribnb.ca) to find ch...


A wildly successful manufacturer

Niche food producer “Sweets from the Earth” thrives using innovation, uniqueness and an unwavering focus on quality. A neighbour’s stew turned Ilana Kadonoff off meat at the age of s...

_








Member of BC Press Council


22771