OTTAWA — Canada posted a merchandise trade surplus of $638 million in June as exports of crude oil and gold rose sharply, Statistics Canada said Tuesday.
The agency said the result compared with a revised trade deficit of $1.6 billion in May. The initial reading for May released last month had shown a deficit of $1.9 billion.
Exports rose 5.5 per cent in June to $66.6 billion, as exports of energy products gained 11.7 per cent, helped by a 13.3 per cent increase in exports of crude oil.
Exports of metal and non-metallic mineral products also gained 11.8 per cent in June, boosted by exports of unwrought gold.
Olivia Cross, North America economist at Capital Economics, said the strength of oil exports in June suggests GDP in the second quarter will come in stronger than the 2.1 per cent annualized gain that the flash estimate implied.
"Coupled with stronger consumer goods imports, which bodes well for domestic demand, the outlook for the third quarter appears relatively bright," Cross wrote in a report.
She noted the increase in crude oil exports came as exports from the port of Vancouver ramped up following the completion of the Trans Mountain pipeline expansion.
Imports increased 1.9 per cent to $66.0 billion in June as imports of motor vehicles and parts rose 5.1 per cent.
In volume terms, exports rose 3.8 per cent in June and imports increased 1.3 per cent.
Regionally, Canada posted its largest trade surplus with the United States since November 2023 as it increased to $9.4 billion in June, compared with $8.8 billion in May.
Canada's trade deficit with countries other than the United States was $8.7 billion in June compared with a deficit $10.4 billion in May.
In a separate report, Statistics Canada said the country's monthly international trade in services deficit widened $1.1 billion in June compared with $1.0 billion in May as imports of services increased 1.6 per cent to $18.3 billion and exports of services rose 0.6 per cent to $17.2 billion.
When combined, the agency said total exports increased 4.4 per cent to $83.8 billion in June, while total imports rose 1.8 per cent to $84.3 billion for a total trade deficit of $501 million in June compared with a deficit of $2.6 billion in May.
This report by The Canadian Press was first published Aug. 6, 2024.
The Canadian Press
