Exports of motor vehicles and parts jumped 21% in December, reaching the highest level since September of 2020. PHOTO courtesy Stellantis.
Canadian exports fell 1.2% in terms of value to $63.0 billion in December, according to Statistics Canada, but export volumes were still growing.
After removing price effects, export volumes were up 0.9%.
The decrease in nominal exports spanned 7 of 11 major commodity groups, led by considerable declines in the exports of energy and farm products. Exports to the U.S. edged down 0.1% in value to $47.3 billion in December, while exports to the rest of the world fell 4.5% in value to $15.7 billion.
“Over the near term, a cooling global economy will continue to be a headwind for export growth, though this should be somewhat offset by easing supply chain constraints,” commented Alan Arcand, chief economist with Canadian Manufacturers & Exporters.
Exports of farm, fishing and intermediate food products tumbled 9.9% to $5.3 billion in December, following three strong monthly gains. Despite the decline, exports of this product category surged by more than 20% in the fourth quarter, largely reflecting higher production in the most recent crop year.
“On the upside, exports of motor vehicles and parts jumped 21.0% to $7.5 billion in December, the first increase in three months and the highest level since September 2020. This is another positive sign that the supply chain issues plaguing the auto industry continue to ease,” Arcand pointed out.