Imports, exports rise in summer months; auto rebounds

OTTAWA — Canadian merchandise imports set a new record high in July, in the wake of the appreciation of the Canadian dollar.

According to Stats Canada, imports continued to gain ground, jumping 3.5 percent to $35.7 billion from $34.5 billion in June. This second consecutive monthly rise was led by an advance in imports of automotive products.

Canadian companies exported $39.3 billion in July, a 1.4 percent increase from the revised $38.8 billion in June. Industrial goods and materials as well as automotive products were the driving forces behind this increase.

As a result, the nation’s trade surplus with the world narrowed to $3.7 billion, as imports increased at more than twice the pace of exports, reports StatsCan.

Similarly, Canada’s trade surplus with the United States contracted to $6.5 billion, with imports increasing at a faster rate than exports.

Since April, the Canadian dollar has appreciated 8.0 percent against the U.S. Greenback, making imported goods cheaper. Simultaneously, the volume of imports has increased.

Exports Rise as Industrial Goods Reach Peak:

On the combined strength of metals and alloys, exports of industrial goods and materials hit a record high of $9.7 billion, climbing 6.6 percent, and boosting total exports in July.

After three months of declines, automotive products rose 7.1 percent to $6.7 billion, but were still below their March 2007 level, the highest point this year. The bulk of the rise stemmed from passenger autos, which increased 12.0 percent to $3.4 billion. Exports of parts as well as trucks also contributed to the increase slightly.

Machinery and equipment exports edged up 0.8 percent in July. The biggest increases were in television, telecommunication and related equipment (+13.4%), but they were tempered by exports of aircraft and other transportation equipment, which slipped 0.3 percent to $1.7 billion.

Energy products fell 6.6 percent to $7.0 billion, the second monthly decline in a row.

Forestry products also slipped 0.9 percent to $2.4 billion, the fourth decrease in as many months, while agricultural and fishing products dipped 0.7 percent to $2.8 billion, as wheat exports plunged 25.2 percent.

Record Imports:

Higher imports of automotive products (rising 14.1% to $7.1 billion), machinery and equipment (2.8% to 10 billion) as well as other consumer goods (particularly pharmaceuticals) outweighed declines in the four remaining sectors.

Imports of energy products tumbled more than 10 percent to $3.1 billion, returning to May levels. Agricultural and fishing products also edged down 0.4 percent to $2.1 billion, as declining imports of fruits and vegetables offset rising imports of sugar.