Trade Deficit Hits $1.43B in July

(CBC/Statistics Canada)

Canada recorded a $1.43-billion trade deficit with the rest of the world in July as imports rose faster than exports, Statistics Canada said Thursday. But analysts were quick to say the report is good news for the Canadian economy.

The agency said imports rose 8.3% from the previous month to $31.7 billion – mainly because of a 9.9% gain in imports from the U.S. Exports climbed 3.3% to $30.3 billion. July’s $1.43 billion trade deficit compares to a revised surplus of $37 million in June.

The agency said the gain in imports halted four straight months of decline and was the result of an 8.7% rise in volumes as prices slipped 0.4%. Shipments of machinery and equipment, automotive products and energy products were the main drivers of import growth. The growth in exports was attributable to a 5.9% increase in volumes. Prices fell 2.4%. Read more here.

Summary statistics and a link to the data files are on the Statistics Canada website at website. Export and import price indexes can be viewed here.

Related:

July Trade Deficit Climbs 16.3% to $32 Billion
(The Associated Press)

The U.S. trade deficit shot up in July to the highest level in six months as a surge in shipments of foreign oil and autos pushed imports up by a record amount. The Commerce Department said Thursday that the trade deficit rose 16.3% to $32 billion in July, much larger than the $27.4 billion imbalance that economists had expected. It was the largest imbalance since January and the percentage increase was the biggest in more than a decade. Read more here.

Red Ink Swamps Harper
(Toronto Star)

Ottawa’s finances are in much worse shape than previously forecast and the Conservatives no longer have any idea when they can balance the books.

Finance Minister Jim Flaherty yesterday warned Canadians of painful spending restraints to deal with up to 10 years of deficits. Read more here.