Canada trade surplus narrowed in July to C$778 million

September 2, 2021

OTTAWA (Reuters) -Canada posted a narrower trade surplus in July than in the previous month, missing analyst expectations, as imports rose at a faster pace than exports, Statistics Canada data showed on Thursday.

Canada’s surplus with the world was C$778 million ($616.6 million) in July, down from a downwardly revised C$2.6 billion surplus in June, the largest in nearly 13 years.

Analysts surveyed by Reuters had on average forecast a surplus of C$1.40 billion in July.

Imports jumped 4.2% to hit a record high of C$53.0 billion, mostly on inbound motor vehicles and parts, while exports climbed 0.6% to a record high of C$53.8 billion as increases in a number of products offset a sharp decline in lumber.

“The current run of trade surpluses is largely the result of higher export prices, particularly for commodities … Now that some of those prices are off their highs, the peak in the goods trade surplus is likely in the rear view mirror,” said Royce Mendes, senior economist at CIBC Capital Markets, in a note.

The Canadian dollar was trading 0.1% higher at 1.2604 to the greenback, or 79.34 U.S. cents.

($1 = 1.2618 Canadian dollars)

(Reporting by Julie Gordon in OttawaEditing by Raissa Kasolowsky and Steve Orlofsky)

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