Canada June Trade Deficit Widens To C$3.6B From C$1.4B>

By Courtney Tower

     Ottawa (MNI) - The Canadian goods trade deficit widened to C$3.6 

billion in June from C$1.4 billion in May, Statistics Canada reported 

Friday, with exports falling 4.3% while imports edged up 0.3%.

     Analysts surveyed by MNI had expected a C$1.3 billion deficit in 

June. 

     In the second quarter the total trade deficit soared to C$5.9 

billion from C$2.0 billion in the first quarter this year. Imports were 

up 5.6% from a 3.4% rise in the first quarter. Exports were up 2.8% from 

a 1.3% increase in the first quarter. 

     Statistics Canada reported that exports in June fell 4.3% to C$46.5 

billion after three consecutive monthly record highs, with nine of 11 

sections decreasing. 

     Canada's 4.3% drop in total exports in June was the largest since 

February 2016. Export volumes were down 1.7% and prices fell 2.7%. 

     Imports edged up 0.3% to C$50.1 billion on an 0.8% increase in 

volumes but a 0.5% decrease in prices. 

     In June, there were lower exports to the United States, down 4.5% 

to C$34.5 billion, mostly on lower exports of crude oil. Imports from 

the U.S. were down 0.7% to C$32.4 billion, also on lower imports of 

crude oil. 

     As a result, Canada's trade surplus with the United States fell 

from C$3.5 billion in May to C$2.2 billion in June. This was the 

smallest surplus since June 2016. 

     Canada's surplus with non-US countries declined to C$2.2 billion 

from C$3.5 billion. 

     In volume terms imports were up 0.8% on the month while exports 

fell 1.7%, with Canada posting a deficit of C$0.4 billion in real terms 

after recording a surplus of C$0.6 billion in May. 

     For the second quarter in real terms, both imports and exports rose 

2.9% in the quarter. Canada's surplus in real terms widened slightly 

from C$0.9 billion million to C$1.0 billion. 

     The sharp decrease in June exports was largely due to lower exports 

of unwrought gold and energy products, Statistics Canada said. The small 

increase in imports was led by increased imports of gold bullion. 

     Energy exports fell 9.2% on the month. Excluding energy, exports 

decreased 3.4%. 

     --MNI Ottawa Bureau; yali.ndiaye@marketnews.com

     [TOPICS: M$C$$$,MACDS$]