On June 6 Statistics Canada released data showing, on a quarterly basis, the value of Canadian exports of lumber and other sawmill and millwork products declined in 1Q (-2.2%) and 3Q (-6.4 %) 2017.
Canadian export values of softwood lumber fluctuated substantially throughout 2017, as softwood lumber duty rates and coverage varied, said StatsCan.
The modest increase in 2Q exports (+0.3%) resulted from growth in prices and lower volumes, while higher prices combined with temporary tariff reprieves contributed to a sharp +13.7% 4Q nominal increase.
In spite of those fluctuations, for the year, exports of lumber and other sawmill and millwork products increased +4% to $16.3 billion. The increase can be attributed to higher prices, which rose +10.3%, and coincided with strong US demand. New residential construction in the United States has been growing steadily since 2011, with new construction starts in 2017 exceeding the previous year’s level.
Canadian International Merchandise Trade: April 2018
As for 2018, Statistics Canada released also Wednesday monthly data, which showed Canada’s total exports rose +1.6% to a record $48.6 billion in April, while imports were down -2.5% to $50.5 billion. As a result, Canada’s merchandise trade deficit with the world narrowed from $3.9 billion in March to $1.9 billion in April.
In real (or volume) terms, exports rose +1.2% and imports fell -2.4%.
US Construction Labour Market: March 2018
Exports increased +1.6% to a record $48.6 billion in April, the sixth increase over the past seven months. Higher exports of metal and non-metallic mineral products, consumer goods and energy products were partially offset by lower exports of aircraft and other transportation equipment and parts.
Exports to the United States were up +3.2% to $36.1 billion in April, notably on higher exports of crude oil and crude oil bitumen. Imports from the United States decreased -1.4% to $32.5 billion, mostly on lower imports of passenger cars and light trucks.
Year over year, total exports rose +3.1%.
Consequently, after five monthly contractions, Canada’s merchandise trade surplus with the United States widened to $3.6 billion in April from a $2.0 billion surplus in March, said StatsCan. Comparing the average exchange rates of March and April, the Canadian dollar gained 1.2 US cents relative to the American dollar. This followed a decline of 2.1 US cents in March.
After reaching a record high in March, imports fell -2.5% in April to $50.5 billion, with declines in 8 of 11 sections. Lower imports of motor vehicles and parts and consumer goods were partially offset by higher imports of energy products.
Year over year, total imports were up +4.7%.
Following two months of strong increases, imports of motor vehicles and parts decreased -5.8% to $9.7 billion in April.