Canadian exports rise for sixth straight month in June
- August 5, 2022
Canadian merchandise exports rose 2.0% to $69.9 billion in June, the sixth consecutive monthly increase. At the same time, imports climbed 1.7% to $64.9 billion, up for the fifth month in a row, according to Statistics Canada records.
After removing price effects, export volumes were up 2.2% in June, indicating that export prices fell. This was the first decline in export prices since December 2021. In contrast, import volumes were down 0.3% in June, signalling that the increase in imports was mainly due to higher prices.
“Canada’s impressive export growth performance and large trade surpluses have been largely driven by higher commodity prices. This has resulted in a disparity in growth between export values and volumes,” explains Alan Arcand, Chief Economist, Canadian Manufacturers & Exporters. “Since the beginning of 2022, nominal exports have risen by more than 20%, while real exports are up just 0.2%. Canada’s real export activity is likely to remain tepid over the near term with the global economy facing an increasingly gloomy and uncertain outlook.”
MOST PRODUCT CATEGORIES SEE INCREASE IN EXPORTS
The increase in exports was widespread, spanning 8 of 11 product categories. Exports of metal and non-metallic mineral products rose 6.5% to $7.9 billion in June. The growth was driven mainly by exports of unwrought gold, silver, and platinum group metals, and their alloys—a category mainly composed of unwrought gold.
Exports of consumer goods climbed 6.3% to $8.0 billion in June. Exports of motor vehicles and parts fell 2.3% to $6.5 billion, the second straight monthly decline, as supply chain issues continued to weigh on auto production.
CANADIAN EXPORTS TO THE U.S. INCREASE FOR SIXTH STRAIGHT MONTH
Exports to the U.S. climbed 1.2% to $53.5 billion in June, up for the sixth month in a row. At the same time, exports to the rest of the world rose 4.5% to a record high of $16.4 billion. Among Canada’s major non-U.S. trading partners, exports to China, the U.K., Mexico, the EU, and Japan were up, while exports to South Korea were down.