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By Greg Quinn
Ottawa (MNI) - Canada fell back into trade deficits as imports
rebounded while exports declined for a second month.
The July deficit of C$1.12 billion exceeded the MNI median of C$200
million, and Statistics Canada also flipped the June figure to a C$55
million deficit from an initial C$136 million surplus. The damage even
went back to May, with another revision shrinking the surplus for that
month to C$470 million from C$556 million.
Imports climbed 1.2% in July following a 4% drop in June, with the
rebound led by pharmaceuticals brought in from Switzerland and Germany.
Imports of rail cars to transport crude oil also grew, along with ores
used in aluminum plants after some temporary shutdowns.
Exports fell 0.9% after a 5% decline in June. Energy products fell
by 6.7% on lower crude oil prices, while non-energy products advanced by
0.5%, Statistics Canada said.
Canada's trade balance with the U.S. narrowed to C$4.6 billion in
July from C$5.5 billion in June.
The report is more in line with signs that a global trade war is
beginning to disrupt supply chains, following signs earlier this year
that Canadian exporters were shrugging off threats from the U.S. and
China. Strength in foreign trade was the main reason Canada reported
a faster-than-expected growth annualized growth rate of 3.7% in the
second quarter last Friday, and today's figures suggest that momentum
In a separate reoprt, Statistics Canada said labor productivity
rose 0.2% in the second quarter from the first, and by 0.3% from a year
earlier. Productivity measures how much a typical worker can produce in
a given period of time.
--MNI Ottawa Bureau; +1-613-314-9647; firstname.lastname@example.org