Canadian exports surged 6.3 per cent in June, according to Statistics Canada Wednesday, while imports fell slightly by 0.6 per cent, narrowing Canada’s trade deficit sharply to just under $0.5-billion.
In the US, the Institute for Supply Management said also Wednesday its services sector index rose to 60.3, the highest reading since August 2005, a sign of confidence that the non-manufacturing sector, which accounts for more than two-thirds of US economic activity, was growing swiftly.
Canada’s exports to the United States rose 7.1 per cent to $34.2 billion in June, according to the latest Statistics Canada data Wednesday. Exports to countries other than the United States increased 3.8 per cent to $10.4 billion.
Imports from the United States declined 0.9 per cent to $29.5 billion. Imports from countries other than the United States edged up 0.1 per cent to $15.6 billion, on small but widespread increases among the principal trading partners.
Consequently, Canada’s trade surplus with the United States widened from $2.1 billion in May to $4.7 billion in June. Canada’s trade deficit with countries other than the United States narrowed from $5.5 billion in May to $5.2 billion in June.
The US international trade deficit in goods and services increased to US$43.8 billion in June from US$40.9 billion in May,
according to the US Census Bureau, also Wednesday. Exports decreased to US$188.6 billion in June from US$188.7 billion in May. Goods were US$127.6 billion in June, down from US$127.8 billion the month before. Services were $61.0 billion in June, up
from US$60.9 billion in May.
Exports of large capital equipment, including telecommunications gear and industrial machinery, fell 1.7 per cent in June. Imports of food, auto parts, and cell- phones surged as Americans spent more.
International trade subtracted about 2 percentage points from growth in 1Q, when the economy expanded at an anaemic annual rate of just 0.6 per cent. It then added 0.1 percentage point in 2Q, when growth picked up to a 2.3 per cent pace.
Of the Institute for Supply Manage- ment’s services sector index, the business activity subindex rose to 64.9. It was the best reading for that index since Decem- ber 2004.
The employment index rose to 59.6, its strongest since August 2005.